The General Superintendence of the Administrative Council for Economic Defense (SG/Cade) responded to the request for a preventive measure made by to suspend the political rights of CA Investment, controlled by Paper Excellence, in . While the measure is in force, Paper will be prohibited from voting at general meetings, among other restrictions.
The decision was taken as part of an investigation into alleged anti-competitive conduct carried out by Paper in the pulp market in Brazil. SG/Cade investigates, for example, the creation of difficulties in the operation or development of a competing company. Preventive measures are adopted when the body understands that there is a risk of “irreparable damage or damage that is difficult to repair” to the market.
The investigation, which was still preparatory in nature, has now been converted into an administrative inquiry. The investigation will continue to investigate signs of infringement of the economic order.
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In 2017, Paper purchased 49.41% of Eldorado and, under the agreement, would have the right to acquire the remaining 50.59% of the shares that remained with the Batista brothers’ holding. The agreement, however, was challenged by J&F in court, in a corporate fight that lasted more than six years and involved around R$15 billion.
On Monday afternoon, a conciliation hearing will be held between the two companies at the Federal Supreme Court (STF).
Ricardo Bellino from Ensina
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