Page 24 - COMPETITION LAW_Flip

24
MERGER CONTROL

current shareholders. XP entered into a commitment not to discriminate against investment
products offered by Itaú’s competitors and was prohibited from demanding exclusivity
arrangements from investment product providers. Itaú agreed not to discriminate against
platforms competing with XP if it decided to distribute its investment products through
open platforms. The agreement also barred Itaú from directing clients to XP, therefore
avoiding the reinforcement of its dominant position in the platforms segment. Finally, XP
agreed to maintain its zero fee or zero tariff policy.
As the transaction involved financial institutions, the acquisition was also
analyzed by the Central Bank. In August, the Central Bank released a decision imposed additional
remedies. The main limitation changes the stock purchase schedule, preventing Itaú from acquiring
control over XP in the future.

Praxair and Linde merger:
the concentrated industrial and medical gas market

In June, CADE’s Tribunal approved the merger between Praxair (White
Martins) and Linde with restrictions . The deal involves industrial, special and medical gas industry.
5
CADE observed that the market is highly concentrated, and the Parties are
the main players. In order to address the competition concerns, a consent decree establishing
both structural and behavioral remedies was negotiated.
While details of the details divestiture package have not been publicly
disclosed, it is possible to infer from the ruling that: (i) there is an upfront buyer commitment;
and (ii) the merging entity will only retain Linde´s plant that have no output surplus (in other
words, plants fully dedicated to on-site supply to a certain customer), agreeing to divest all plants
with production directed to the bulk and cylinder markets.
Concerning the behavioral remedies, CADE’s Tribunal imposed a non-
discrimination commitment with regards to the supply of calcium carbide (gas produced only
by Praxair in Brazil).

Brink’s’ acquisition of Rodoban:
concentration in the cash transportation market; competition advocacy

In November, CADE’s Tribunal approved Brink’s’ acquisition of Rodoban.
The transaction involved the cash transportation market .
6

5 See Merger Review No. 08700.007777/2017-76.
6 See Merger Review No. 08700.000166/2018-88.
We represented Tecnologia Bancária (TecBan)
in an intervention in this matter. Any opinions
and views expressed here are our own and do not
represent our client’s position in the case.