A PYMNTS Company

Brazil: Regulator recommends rejection of Petrobras sale

By  |  August 29, 2017

The General Superintendence of Brazil’s Administrative Council for Economic Defence (Cade) on Monday, August 28, recommended rejecting the acquisition of a liquefied petroleum gas distribution unit owned by state-controlled oil company Petroleo Brasileiro by Ultragaz Participações.

The watchdog division said the sale of Liquigas Distribuidora should be rejected by Cade’s board because the new player could have excessive regional market power that would be difficult to resolve through divestitures.

In a statement, Cade’s panel said the deal would eliminate one of the four competitors controlling 85% of the market and would create incentives to price collusion.

Full Content: Agencia Brasil

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.