Nestlé bought Garoto in 2002, but the deal was vetoed by the Council two years later
BRASILIA – O Economic Defense Board (Cade) The judgment on the purchase of Garoto by Nestlé began this Wednesday 7, twenty years after the operation was carried out between the companies. The case is denounced by the president of the organization, Alexandre Cordeiro. A Nestle bought the Lad in 2002, but Cade vetoed the operation two years later. At the time, judgments were handed down after the deal was completed.
Nestlé appealed to the Justice and succeeded, in the first instance, in suspending the decision in 2005. In 2009, however, the Justice canceled the first instance decision and established that Cade would judge the company again. judgment and automatic approval of the transaction.
Only in 2018 did the Federal Regional Court of the 1st Region (TRF1) dismiss Nestlé’s appeal and, in April 2021, a new appeal in the same process. In practice, the decision maintained the 2009 court decision, which ordered a retrial by Cade.
Legal feasibility
Cade’s chief prosecutor Juliana Domingues said there has been a major shift in the structure of the market affected by Nestlé’s purchase of Garoto in the 20 years since the deal.
“There has been a change in the structure of the market. After many negotiations, Nestlé formalized a proposed agreement and, from that moment, the Public Prosecutor’s Office began to evaluate the convenience of an agreement,” explained Domingues in a note on the case. , which precedes the council’s vote. .
“The effectiveness of the agreement anticipates the conclusion of the trial with a balanced solution between the parties,” said the chief prosecutor. “There is a legal feasibility of the analyzed agreement, there are elements of the agreement that demonstrate ‘benefits’, it ends a dispute,” he quoted.
Source: Terra
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