Panel SA: Nestlé wants to go to court in case about the purchase of Garoto no Cade

The purchase of chocolate maker Garoto by Nestlé, a story stuck for two decades, whose process had reopened analysis by Cade (Administrative Council for Economic Defense) last year, has returned to move in recent weeks within the body.

The municipality sought out the food giant to request market information, a gesture that could signal an opening of dialogue for an agreement in the old imbroglio, but the company did not respond with the data. He preferred to continue in the unfolding of the judicialization.

“After more than two decades of the acquisition of Garoto and successive pronouncements by the Judiciary Power recognizing Nestlé’s rights, we understand that it is – legally and socially – more prudent and appropriate to wait for the exhaustion of the judicial bodies before any potential reopening of the case before the Brazilian competition authority”, says the company.

Announced in 2002, the purchase was disapproved by Cade in 2004 on the grounds that the merger would harm competition in the chocolate market by involving two of the largest companies in the sector. The following year, it would become a major judicial process, which is currently at the TRF-1 (Federal Regional Court of the 1st Region).

Joana Cunha with Paulo Ricardo Martins and Gilmara Santos