On April 17th, 2013, The Administrative Council for Ecominic Defense - CADE executed a Performance Commitment Agreement - TCD with Casas Bahia and Ponto Frio, regarding a transaction in the durable goods market.
The transaction involved two concentration acts jointly analyzed. The first one regarded the acquisition of Globex Utilidades S.A., a company active as Ponto Frio, by the Companhia Brasileira de Distribuição, which belongs to Pão de Açúcar Group. The transaction was unconditionally approved by the Administrative Council for Economic Defense - CADE Tribunal.
The second Concentration Act regarded the transaction performed by Ponto Frio and Casas Bahia, through which a holding company called Via Varejo was incorporated, the largest Brazilian retail company, which in turn will control Ponto Frio, Casas Bahia and Nova Pontocom, a company incorporated as a result of the transaction.
The second transaction was conditionally approved through the execution of the TCD. As a result of the agreement, the parties agreed with a divestment plan in markets where an overlap was verified, and also in which the exercise of market power could exist. Some other assets are also subject to divestments, according to the case Reporting Commissioner, Mr. Marcos Paulo Veríssimo. As agreed, several stores across 54 municipalities will be sold, so the TCD terms are accomplished. The Applicants shall present the divestment plan within the next two months.