Cristiane Lucchesi and Arnaldo Galvao – Bloomberg, 9/16/2012
Brazil’s antitrust authority may change merger reporting requirements for investment funds after complaints that the regulations, which took effect three months ago, are too sweeping.
“We are talking to capital-markets associations and lawyers in Brazil and abroad,” said Carlos Ragazzo, general superintendent of Cade, as the authority is known. The goal is to “bring to the board the possibility of change in the regulation for funds as a way to improve the legal procedure,” Ragazzo said in an interview.
The merger law, which Brazil President Dilma Rousseff signed late last year, requires buyers to seek antitrust approval before closing a deal. It forces funds to report acquisitions to Cade if annual revenue exceeds 750 million reais ($373 million) at either the fund’s shareholder, the fund- management company or other companies from the same sector in the fund’s portfolio or among the management company’s holdings.