On December 18, 2013, during its 35th Ordinary Judgment Session, the Tribunal of the Administrative Council for Economic Defense (“CADE”) approved a request by Commissioner Ana Frazão to extend the term for review of the concentration act no. 08700.005447/2013-12 (“Transaction”).

The Transaction involves a stock-for-stock merger that will ultimately unify the activities of two of the biggest players in the upper-education and post-graduation sectors in Brazil and, if consummated, will generate concentration in several markets. During its analysis, CADE’s General-Superintendence identified horizontal overlaps in more than 393 relevant markets. For this reason, the authority issued a statement of complexity on October 16, 2013, determining the need to deepen the antitrust analysis.

On December 3, 2013, the General-Superintendence issued Technical Opinion no. 358/2013, challenging the Transaction. The case was subsequently assigned to Commissioner Ana Frazão, who decided to request the 90-day extension of the term for review1, for the first time since Law no. 12,529/2011 came into force. Therefore, the review of the Transaction may take up to 330 days2 to be completed.

For more information, please contact the partner Eduardo Molan Gaban.

Observations in this update about Brazilian law are by Tauil & Chequer Advogados. They are not intended to provide legal advice to any entity; any entity considering the possibility of a transaction must seek advice tailored to its particular circumstances.

1 As provided by article 88, paragraph 9, item II, of the Law no. 12,529/2011.
2 Counted as of the date of the notification of the Transaction.