Cade approves consortium between Ultragaz and Supergasbras – 03/24/2023 – Market

Cade (Administrative Council for Economic Defense) approved the consortium between Supergasbras and Ultragaz, found out Sheet. The decision was taken this Friday (24) and should be published in the DOU (Official Gazette) on Monday (27).

The deal between the two companies involves the exchange of sensitive commercial information and therefore had to go through the antitrust authority. In addition, companies will be able to share their operating structures.

The arrangement found by the two companies prevented Cade from disapproving the operation in a concentrated market. The autarchy prevented the purchase of Liquigas by Ultragaz five years ago and the Petrobras subsidiary ended up with Copagaz and Itaúsa.

Liquigas was sold as part of Petrobras’ disinvestment strategy.

With that, Copagaz became the leader of the sector, with 24.5% of the market in 2022. Next comes Ultragaz, with 23.1%, and Nacional Gás, with 21.8%. Supergasbras is the fourth with the largest share, 20.8%. The rest of the market is divided between smaller companies, with shares of less than 10%.

The operation between Supergasbras and Ultragaz was questioned by a competitor, Copagaz. For the competitor, the practical effect of the deal is a merger and, therefore, it should be prevented.

Cade’s General Superintendence did not understand the operation that way. It functions as a first instance in the body and has the power to approve operations or else refer them to the administering court, which has the final word.

The collegiate is composed of six directors and a president. Any one of them may disagree with a Superintendence’s decision and ask that a business approved in the first instance pass through the board’s scrutiny.