Cade has approved joint ventures with 11 companies in the automotive industry

Cade has approved joint ventures with 11 companies in the automotive industry


The General Manager of CADE – the Administrative Council of Economic Defense approved the creation of joint ventures between BASF, BMW, Henkel, Mercedes-Benz, Bosch, SAP, Schaeffler, Siemens, T-Systems, Volkswagen and ZF. The new business has a platform that will facilitate the exchange of data in the production chain of the automotive industry. The opinion that approved the operation, without restrictions, was signed last Tuesday, 26.

The companies involved in the merger are worldwide at various stages of the automotive industry’s production chain and each will hold 9.1 percent of the capital of this new venture. Regardless of the formation of the joint venture, each organization will continue to operate independently with their respective markets and divisions.

Cade has approved joint ventures with 11 companies in the automotive industry.(Photo: Freepik)

According to the notification form submitted by the company to CADE, the new business will operate an interactive, non-discriminatory, widely and freely available data network in the industry. In addition, it will increase the efficiency of the process, improve product quality and help achieve sustainable goals.

In his opinion, SG/Cade concluded that the operation does not risk causing damage to the competitive environment, given that the purpose of the joint venture is to improve the production processes of organizations and seek greater efficiency, not to live in natural commercial strategies. Brazil’s antitrust agency also pointed out that the deal was approved by competition protection authorities in Germany, the company’s home country, an important sign that its preference is not anti-competitive.

If the Court of CADE does not request the merger for analysis or there is no appeal of third parties interested, within 15 days, the decisions of the General Manager will have the character of termination and the activities will be definitively approved by the antitrust agency.

Information: Cad.