Due to a tight score, Cade approves the purchase of Gaspetro by Compass without restrictions
The transaction of the Cosan group company, which involved a stake held by Petrobras, was approved by four favorable votes and without restrictions.
The Administrative Council for Economic Defense (Cade) approved, this Wednesday, the purchase of 51% of the gas distributor Gaspetro by Compass.
The transaction of the Cosan group company (CSAN3), which involved a stake held by Petrobras (PETR3;PETR4), was approved by a tight score.
Three councilors voted to impose conditions and four to endorse without restrictions. as anticipated the broadcastGrupo Estado’s real-time news system, part of the board expressed concerns that the operation could create a new “gas giant”, with Compass gaining a very large market share, especially in states such as São Paulo and Santa Catarina. Catherine.
The main disagreement during the trial was about the need to make the sale of 12 distributors by Compass mandatory or not. During the process, the company voluntarily submitted a business plan that provides for the divestment of a dozen companies, out of a total of 18 acquired in the business.
According to the Broadcast, the companies to be sold are located in states such as Acre, Roraima and Alagoas and do not include consumer markets in the South and Southeast.
The rapporteur of the process, Luiz Hoffmann, voted for the approval of the purchase of Gaspetro without restriction because he understands that the intention presented by Compass to get rid of distributors is sufficient. “When Compass comes to the file and explains its business plan, I cannot treat it as irrelevant information. It is essential information and, if not proven, it can lead to a review of the operation”, added the counselor Gustavo Augusto, who accompanied the vote of the rapporteur.
Counselor Luiz Braido, on the other hand, presented a dissenting vote in which he made the sale, within three years, of the 12 companies an obligation. The vote also determined that Compass and other Cosan companies could not enter into new gas commercialization contracts in the free market in regions where they had control over regional distribution companies.
“Compass reported that sales are part of its business plan, but business plans can change, especially when there are incentives,” added counselor Sérgio Ravagnani, who voted with Braido.
The majority accompanied the rapporteur, leading to the approval of the deal without restriction.
In July last year, Compass announced the purchase of Petrobras’ stake in Gaspetro for R$2.03 billion. The sale is one of the measures taken by the state-owned company to comply with the Cessation Commitment Term (TCC), signed in July 2019 with Cade, with the purpose of stimulating competition in the natural gas market.
In March, the General Superintendence of the antitrust agency even approved the operation, without restrictions, but there was an appeal, which brought the deal to the court’s assessment.
“With the acquisition, we believe that Compass will be able to replicate the successful model of Comgás in these new companies, improving the service offered to customers, reducing inefficiencies and generating a good return for shareholders,” said Levante in a report released this morning.
For Credit Suisse, the approval by Cade is positive and in line with the recommendation of the General Superintendence of the municipality in March. Compass announced that it has committed to sell Gaspetro’s stake in 12 of its 18 gas distributors.