On 5 October 2011, the Brazilian Congress passed a bill to restructure the Brazilian System for Protection of Competition and to modify Brazilian practice. The new system will be managed by the Administrative Council for Economic Defence (“CADE”). The Secretariat of Economic Law will be turned into the General Superintendence and will form part of CADE. The Secretariat for Economic Monitoring will maintain an advocacy role.
The new law introduces a mandatory waiting period so that transactions cannot close until they have been approved by the CADE. It also includes notification thresholds of R$400 million in turnover for all parties involved in the transaction, and $30 million for the target. The previous market share threshold test has been eliminated. The leniency provisions will also be extended to automatically cover all employees of a corporation. Previously, each individual employee was required to sign the leniency agreement. The new law will come into force 180 days after it has been formally enacted by the President.