The previously published article had an error in the title, first and penultimate paragraphs. Contrary to what was previously reported, the representation to Cade was made by Eldorado, and not by J&F. The corrected article follows.
The General Superintendence of the Administrative Council for Economic Defense (SG/Cade) responded to the request for a preventive measure from Eldorado Celulose, controlled by J&F, to suspend the political rights of its minority shareholder, CA Investment, controlled by Paper Excellence. While the measure is in force, Paper will be prohibited from voting at Eldorado’s 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.
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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.
The two companies have been fighting on several fronts for control of Eldorado for more than six years. Paper acquired 100% of Eldorado in 2017, but the contract was taken to court. Currently, Paper has 49.41% of the pulp company and J&F maintains control of the majority share, 50.59%.
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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