CADE publishes English version of the Guidelines on gun jumping
The Administrative Council for Economic Defense – CADE published, on Monday 26, the English version of the Guideline for the Analysis of Previous Consummation of Merger Transactions.
The purpose of the document is to establish parameters to be used as reference for companies in their negotiations and evaluations of merger transactions, in order to avoid gun jumping – term that means the consummation of the transaction without a previous authorization by the antitrust agency.
The Guideline is divided in three sections. The first section defines gun jumping and the actions which can lead to it. The second section sets forth specific procedures that companies should adopt to minimize the risks of this practice, such as clean teams and parlor rooms. The third section is about the penalties that can be applied to the parties in case of noncompliance with the established rules.