Brazil’s Administrative Council for Economic Defense (CADE) has imposed a fine on Totalmix and Lar Cooperativa Agroindustrial for prematurely completing their merger, a violation known as “gun jumping.” The decision, issued during Cade’s 238th Ordinary Session on October 30, followed an investigation that revealed a 1,590-day delay in notifying the agency about the transaction.
The merger itself had already received CADE’s approval in May 2024; however, the court’s latest ruling addressed only the fine. Reporting Counselor Gustavo Augusto emphasized that the penalty, capped at 20% of the transaction’s corrected value, amounted to R$2.8 million. Both companies must pay this fine to Brazil’s Diffuse Rights Fund (FDD) within 30 days after the decision is published in the Official Gazette.
The investigation originated from a report submitted via CADE’s “Clique Denúncia” system, which allows citizens to report anticompetitive practices, such as cartels, price-fixing, and unapproved mergers.
