Cade gives approval for Brookfield to buy assets and Localiza-Unidas merger will be completed in July

The Court of the Administrative Council for Economic Defense (Cade) approved this Wednesday a fund from the Canadian manager Brookfield, which controls the car rental company Ouro Verde, as a buyer of the assets sold in the scope of the merger between the sector leaders Localiza and Unidas.

With the green light from Cade, Localiza and Unidas expect to close the business combination on July 1, the two companies said in a joint material fact.

The sale is of Unidas assets, including 49,000 cars, and was determined by Cade’s court in December as a condition for the deal, a merger between the country’s two largest car rental companies, to receive approval from the municipality.

Brookfield agreed to buy the assets for about 3.6 billion reais, according to the rental companies in mid-June.

Despite the purchaser’s name having been approved, the closing of the sale of the assets to Brookfield “remains subject to CADE’s approval, among other conditions, and will occur after the consummation of the business combination”, Localiza and Unidas said.

Source: Reuters