The Superintendence of Brazilian regulator CADE has issued a recommendation to its general council to withhold approval for the proposed merger between the country’s biggest education companies, Kroton and Estació.
The merger, estimated at over $1.7 billion US, has been approved by both firms’ shareholders, with the decision still being reviewed by the courts. However, CADE’s negative would represent a severe blow to the companies’ plans.
CADE’s Superintendence has determined that a merger between the two companies would lead to excessive concentration, bordering on monopoly power in several local markets, with negative effects for the country as a whole. Their analysis, they say, revealed several redundancies in their post-graduate offerings, as well as a strong likelihood of negatively impacting the cost of tuition and registration, reducing incentives for innovation and diversification.
Kroton and Estació will prepare a new proposal of compromises to be presented to CADE’s investigators. The offer is expected to include the sale of several of the companies’ distance-learning services, in hopes of relieving the agency’s concerns.
Full Content: Diario de Goias
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Subscribers Defend $4.7 Billion Antitrust Verdict Against NFL in Court Filings
Jul 19, 2024 by
CPI
Von der Leyen Calls for Competition Policy to Boost EU Companies’ Growth
Jul 19, 2024 by
CPI
Vermont AG Sues Pharmacy Benefit Managers Over Drug Prices
Jul 18, 2024 by
CPI
Australians Face Increased Stamp Prices Following ACCC Approval
Jul 18, 2024 by
CPI
Live Nation Seeks Dismissal of DOJ Antitrust Allegations
Jul 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Private Equity Roll-Up Schemes
Jun 28, 2024 by
CPI
The FTC’s Focus on Private Equity is Warranted
Jun 28, 2024 by
CPI
Unraveling the Roll-Up: Private Equity’s Misunderstood Investment Strategy
Jun 28, 2024 by
CPI
Antitrust Focus on Private Equity Funds and Serial Acquisitions
Jun 28, 2024 by
CPI
Private Equity Roll-Ups Amidst Heightened Antitrust Enforcement
Jun 28, 2024 by
CPI