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Brazil: CADE approves Unilever – Selmi JV agreement

By  |  October 22, 2018

Brazil’s Administrative Council for Economic Defense(CADE) approved on Monday, without restrictions, the proposed agreement between multinational Unilever and its Brazilian rival Pastificio Selmi for the production of pastes and dough under the Knorr brand.

Under the proposed agreement Selmi, which produces edible paste under the Renata brand, will also produce Knorr brand products, while the Unilever group would be in charge of distribution.

“The applicants justified the operation as allowing for the expansion of Unilever Group’s activities in the food industry, by expanding its portfolio in Brazil, while for Selmi the operation represents an opportunity to employ its productive capacities in a remunerated manner, diversifying its sources of funding” said CADE.

The decision by the competition authority was revealed days after the imposition of a major fine against Unilever for the imposition of exclusivity schemes and discounts on local sellers in the ice cream market.

Full Content: Época Negocios
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