CADE clears the acquisition of Nossa Caixa by Banco do Brasil

On yesterday's (#472) judgement session, CADE has approved with conditions the acquisition of 71,25% of the stock capital of Banco Nossa Caixa (formerly owned by the São Paulo State) by the Banco do Brasil, a bank controlled by the Federal Government.

According to the Reporting Commissioner César Mattos, on 157 munipalities of the São Paulo State the transaction resulted in a market share superior to 40% (on some of them the concentration was100%). The only condition to the approval was the commitment to set up a free call center service for the customers located on such municipalities in order to inform them about the possibility to move their bank accounts to a competing financial institution and in case the customers chose to do so the call center will take care of the relevant documents for the migration to the bank elected by the customer.

Commisioner Olavo Chinaglia dissented from the remaining commissioners who agreed with Commissioner Mattos. Chinaglia voted for the unconditional approval of the transaction.