On November 5th, CADE has issued two new 'official precedents', both concerning certain events that may trigger the need for a merger submission in Brazil.
CADE's 'official precedents' are enacted after the Brazilian competition agency has reached the same decision in 10 different cases, and have the purpose of indicating to the market how CADE will decide about a specific issue in future rulings.
The first one (Official Precedent n. 09) states that for the purposes of counting the deadline set forth in parag. 4 of article 54 of the local competition law, the transaction is considered to have 'occurred' after the sale/purchase option has been exercised, and not at the date such an option was formalized in a written agreement. The exception for such a rule is the situation where the instrument predicting the possibility of exercise of this option already produces rights and obligations that are capable of changing (even if merely potentially) the competitive landscape between the parties.
The second precedent (Official Precedent n. 08) states that for the purposes of counting the deadline set forth in parg. 4 of article 54 of the local competition law, the transaction is considered to have 'occurred' at the date the transaction was executed, and not after the implementation of a certain condition precedent.
CADE's 'official precedents' are enacted after the Brazilian competition agency has reached the same decision in 10 different cases, and have the purpose of indicating to the market how CADE will decide about a specific issue in future rulings.
The first one (Official Precedent n. 09) states that for the purposes of counting the deadline set forth in parag. 4 of article 54 of the local competition law, the transaction is considered to have 'occurred' after the sale/purchase option has been exercised, and not at the date such an option was formalized in a written agreement. The exception for such a rule is the situation where the instrument predicting the possibility of exercise of this option already produces rights and obligations that are capable of changing (even if merely potentially) the competitive landscape between the parties.
The second precedent (Official Precedent n. 08) states that for the purposes of counting the deadline set forth in parg. 4 of article 54 of the local competition law, the transaction is considered to have 'occurred' at the date the transaction was executed, and not after the implementation of a certain condition precedent.
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