8/23/2010

CADE allows trademark termination of merger under analysis

During the 473rd Section of Judgement CADE approved that all the Extra Eletro stores had their names changed either to Ponto Frio or Casas Bahia.

Extra Eletro stores are focused on eletronic household devices and computer and belong to Grupo Pão de Açúcar, major Brazilian retail and supermarket group, that has entered into a merger with Casas Bahia last December. Six months earlier, Pão de Açúcar has bought Ponto Frio. Casas Bahia and Ponto Frio were retail business for furniture and also electronic household devices and computers.

The two transactions are still under analyzis by CADE and Casas Bahia and Ponto Frio merger is under an agreement not to fully merge (in portuguese acronym, APRO) and under this agreement, trademarks Ponto Frio and Casas Bahia ought to be preserved until CADE's final judgement. However, Extra Eletro trademark, which belonged to the group involved in the transaction, was left out of the agreement and could be terminated without restrictions.

The parties made a formal request to CADE for the change, however.


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