CADE approves deadline extension to Kroton and Anhanguera merger analysis
The Administrative Council for Economic Defense – CADE approved on 18 November 2013 the Order AF nº 16/2013 that extends the deadline for the merger analysis involving the association between Anhanguera Educacional Participações S/A and Kroton Educacional S/A (Merger nº 08700.005447/2013-12). The Law 12.529/2011 determines a 240 days deadline for a merger analysis, but permits the extension for 90 days by a Tribunal’s motivated decision.
The Reporting Commissioner, Ana Frazão, highlighted that the report issued by CADE’s General Superintendence in early December pointed strong competition concerns derived from the operation. Therefore, it is necessary to better examine the possible anticompetitive impacts that may arise from the association between Anhanguera and Kroton.
According to the Order emitted, “it is necessary an in depth examination of the case”. Frazão stated that the objective of the extension is to evaluate the remedies to the pointed concerns.
With the extension for 90 more days, the Council will have until June to render a decision. The Reporting Commissioner also emphasized that the prolongation signals caution in the merger analysis, and that “the intention is to trial as soon as possible.