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Light Energia and CG I FIP sign an agreement after completing a transaction without CADE’s previous clearance

Merger Control Agreement

Companies acknowledged the anti-competitive conduct and committed to pay a financial contribution of BRL 1.2 million
published: Oct 21, 2020 11:02 PM last modified: Oct 21, 2020 11:02 PM
by International Unit

In the hearing of this Wednesday (21 October), the Administrative Council for Economic Defense (CADE) ratified an agreement with the investment fund CG I Fundo de Investimento em Participações Multiestratégia (CG I FIP) and the company Light Energia for completing a mandatory reporting transaction without CADE's previous clearance.

The Light’s Group website announced, on 15 October 2019, CG I FIP had completed the acquisition of all Light Energia’s shares in Renova Energia. However, it was only in 29 October 2019 that CADE was given notice of the deal.

The Merger Control Agreement was unanimously approved this Wednesday, ordering the firms to pay a financial contribution of BRL 1,222,080.62 for gun jumping. The General Superintendence approved the transaction without conditions in November 2019.

According to Rapporteur Commissioner Paula Azevedo, in calculating the amount of the contribution, CADE used the price of Renova Energia's shares on the day the acquisition was completed. After the shares were added up, the agency also considered the 14 days of delay from the consummation of the transaction to its reporting.

"CADE's negotiations with the acquirer were expeditious and unobstructed, so both parties reached consensual and satisfactory understanding", stated the Commissioner in her opinion.

Mandatory reporting

Law 12529/2011 provides that mergers and acquisitions must be reported to CADE if at least one of the firms involved in the transaction had an annual revenue equal to or greater than BRL 750 million in the year prior to the transaction, and another one whose annual revenue was equal to or greater than BRL 75 million.