CADE issues decision on ABN/Interprint/Incard deal

The transaction concerned the market for smart cards, and was filed to merger review in Brazil in February 2008. By means of the deal, American Banknote S.A. (ABN) had acquired the totality of Interprint Ltda.'s capital stock, and, indirectly, the totality of Tecnofarma Indústria Gráfica Ltda. and half of Incard do Brasil Ltda.'s capital stock.

Although prior recommendations enacted by the Secretariat of Economic Monitoring (linked to the Ministry of Finance) and the Office of CADE's Attorney General had previsously opined for the clearance of the share acquisition, CADE, as per the terms of the vote issued by the reporting commissioner (Mr. Fernando Furlan), opted to clear the transaction subject to the signature of an “Agreement for Specific Performance” by the parties.

According to such an agreement, ABN has agreed to divest certain assets from Incard and Interprint related to the markets for pre-paid and inductive cards, as CADE considered that the overlaps in certain product markets affected by the transaction could lead to antitrust concerns.

The exact scope of the obligations assumed by ABN is not public at this point.

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