Brazil’s competition regulator has put a hold on the merger of grocer Pao de Acucar (CBD) and home appliances group Casas Bahia, pending completion of an investigation into the deal.
In a statement, Brazilian antitrust authority Conselho Administrativo de Defesa Econômica (Cade) said that the companies will be required to separately maintain stores and distribution centres until the deal is given final approval.
Cade said the requirement aims to protect consumers and employment, as well as enable the merger to be reversed should competition authorities decide to block it.
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The investigation is expected to take up to 12 months to complete.
When contacted by just-food, CBD declined to comment on the news or provide details on the costs associated with the delay.
The spokesperson insisted that the merger was aimed an expanding the business of the group’s home-appliance subsidiary, Globex, and that the company remains “committed” to this goal.
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