Sadia/Perdigão Restructuring a Step Nearer

BRAZIL - The competition authorities have been recommended to accept the restructuring of Perdigão and Sadia by Brasil Foods, but with some limitations.
calendar icon 1 July 2010
clock icon 3 minute read

The management of Brasil Foods S.A. (BRF; current corporate denomination of Perdigão S.A.) has announced that, in accordance with Instrucao CVM no. 358/02 and paragraph no. 4 of article 157 of Law no. 6.404/76 (Corporations Law), the Secretaria de Acompanhamento Economico (SEAE; Secretariat for Economic Monitoring) of the Ministry of Finance has issued, the Opinion SEAE-AC 08012.004423/2009-18, regarding the corporate restructuring of Sadia S.A. and Perdigão S.A., which was subject matter of the Relevant Facts previously disclosed on May 19, 2009, in view of the organisation of BRF.

The Opinion issued by SEAE recommends that the Conselho Administrativo de Defesa Economica (CADE; Administrative Council for Economic Defense) should approve the transaction with certain restrictions, proposing two alternatives which may or may not be implemented by the Administrative Council for Economic Defense.

According to the press release, it is important to notice that, according to Law no. 8.884/94, the Opinion issued by SEAE does not have a definitive or binding effect but only supports the administrative decision to be ruled by CADE, which is not bound to the Opinions' terms and conditions. The full text of the Opinion can be obtained at SEAE's web site (; Portuguese version only).

BRF emphasises its trust that there are sufficient technical grounds to prove to CADE that the transaction does not constitute an anti-competitive practice, but solely reinforces the competitiveness of Brazil abroad. In view of the absence of relevant barriers to entry, the intense competition and the development of substantial synergies and efficiencies, BRF is confident that CADE will approve the transaction.

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