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COMPETITION LAW IN BRAZIL: 2018 OVERVIEW 25

The merger notification was filed in THE COMMISSIONER
January 2018. Tecnologia Bancária S.A. (TecBan) and the POINTED OUT THERE WAS
Minas Gerais State Association of Petroleum Derivative EVIDENCE THAT INDUSTRY
Retailers joined as third parties, filing interventions. In ASSOCIATIONS, LIKE THE
September, CADE’s Superintendence approved the deal. BRAZILIAN ASSOCIATION
However, CADE’s Tribunal issued an order determining OF CASH TRANSPORTATION
that the matter should be subject to further review (the same (ABTV) AND THE NATIONAL
order comprised the Prosegur’s acquisition of-Transfederal, FEDERATION OF CASH
which also had impacts on the cash transportation sector). TRANSPORTATION COMPANIES
The Tribunal highlighted the need for further analysis of the (FENAVAL), MIGHT BE
geographic relevant market definition and the possibility FACILITATING COORDINATION
of exercise of market power. AMONG COMPETITORS IN
According to CADE, the merger had AN ATTEMPT TO CREATE
the potential to affect the cash transportation market in DIFFICULTIES FOR NEW
the state of Minas Gerais. While CADE recognized the ENTRANTS AND EXCLUDE
local market was very concentrated, it noted that the TBFORTE FROM THE MARKET.
transaction would not increase the scarcity of competitors THE COMMISSIONER
as Brink’s only has one base in Belo Horizonte and THEREFORE SUGGESTED
would simply be replacing Rodoban at these locations. AN INVESTIGATION OF ANY
The majority concluded that the deal would not increase POSSIBLE COLLUSION IN
the likelihood of exercise of market power by Brink’s THE INDUSTRY.
and voted to approve the transaction .
7
There were two dissenting votes. Commissioner João Paulo de Resende
highlighted the increase in unilateral and coordinated market power, noting that the acquisition
should only be approved if one simple remedy were applied: Brink’s should divest its assets in
the state of Minas Gerais. Commissioner Alkmin followed Resende’s opinion. She held that the
transaction’s likely benefits would not cover the probable costs for the Minas Gerais market.
She also highlighted the risk of collusion. The Commissioner pointed out there was evidence
that industry associations, like the Brazilian Association of Cash Transportation (ABTV) and
the National Federation of Cash Transportation Companies (FENAVAL), might be facilitating
coordination among competitors in an attempt to create difficulties for new entrants and exclude
TBForte from the market. The Commissioner therefore suggested an investigation of any possible
collusion in the industry.

7 In any event, the Tribunal highlighted competition concerns that could arise following approval of
Bill No. 4,238/2012 (known as the Private Security Statute). Among other restrictions, the bill prohibits
financial institutions from holding interests in cash transportation firms. It was stressed that there were
no technical studies justifying these competition restrictions, commenting that the bill’s approval could
create a barrier to entry for TBForte, a cash transportation company controlled by a number of financial
institutions. Commissioners emphasized that TBForte had expanded nationwide and was an important rival,
contributing to increase competition in the market. Therefore, CADE refered its decision to the Ministry
of the Treasury’s Productivity Support and Competition Advocacy Department (Seprac), to assist the
department’s competition advocacy efforts in the National Congress concerning the abovementioned bill.