The suggestion is to reach an agreement to address certain aspects of the deal that could impact competition.
Brazil’s Administrative Council for Economic Defense (CADE) is recommending restrictions on the proposed acquisition of Wickbold’s bakery business by Bimbo do Brasil, citing potential threats to market competition.
In a recent development, CADE’s General Superintendence has forwarded the case to the agency’s Tribunal for review. The recommendation includes reaching a settlement to address competition concerns arising from the deal.
The proposal suggests that Bimbo and Wickbold either negotiate remedies with CADE or, if no agreement is reached, accept conditions imposed by the antitrust authority. These could include changes to non-compete clauses, divestiture of production facilities, distribution centers, company-owned retail outlets, brands, and contracts — all aimed at reducing the operation’s potential harm to competition.
Bimbo do Brasil is the Brazilian subsidiary of Grupo Bimbo, a multinational baking company, and is a significant player in the Brazilian market. Bimbo do Brasil operates under the Grupo Bimbo brand and produces a wide variety of bread, cakes, snacks, and other baked goods.
Wickbold is a Brazilian manufacturer and distributor of bread products. The company produces various types of bread, loaves, and multigrain packaged breads.
Source: Valor Econômico
