Brazil Raises Merger Turnover Antitrust Review Thresholds

Brazil’s Ministries of Justice and Finance raised the thresholds for transactions to trigger a review under the country’s new preclosing merger control system. Under the new law, the minimum levels of turnover needed to require an antitrust review went from 400 million reais ($201 million) for one party and 30 million reais for the other to 750 million reais and 75 million reais, respectively.  This is a key time for Brazil’s Administrative Counsel for Economic Defense (CADE), as it tries to clear deals more quickly now that they require antitrust approval before closing, while it struggles to hire the necessary staff.  The changes should help lessen CADE’s workload by reducing the number of deals that the antitrust agency will have to examine amid the transition.

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