During the trial session of the Administrative Council for Economic Defense (CADE) on 11/27/2024, two cases of Administrative Proceedings for Investigation of Merger Control (No. 08700.002241/2024-93 and No. 08700.001008/2024-93) were judged, both involving the same legal entity on one side. These cases involved accusations of gun jumping, which occurs when a legal transaction is consummated before receiving CADE’s approval, leading to sanctions imposed by the authority. Naturally, this violation applies to cases of mandatory notification and necessary approval.
Both cases involved the acquisition of properties for the storage of bulk solids, which is the acquiring company’s core activity, making these transactions subject to CADE’s approval. In both cases, the transactions were reported to CADE after payment had been fully made in one instance and 88% completed in the other; furthermore, the acquiring party had already taken possession of the acquired properties.
The importance of this case lies in CADE’s conclusion that the full payment in one case and near-complete payment in the other, along with the possession of the acquired properties, constituted the consummation of the transactions without prior approval from CADE. This led to the imposition of sanctions on the parties for the practice of gun jumping.
