The Brazilian government has backed a decision by the country’s competition regulator to block the recent acquisition by Swiss food giant Nestlé of Brazilian chocolate maker Garoto.
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The government said there was no risk to local jobs if Nestlé decided to abandon Garoto altogether because seven other firms were interested in purchasing the Brazilian firm, which employs around 3,000 people, reported Reuters.
Supporters of the deal had used the potential unemployment issue as an argument for why the acquisition should be allowed to stand.
Brazil’s government also said a company with no more than a 20% market share should buy Garoto. Nestlé would have a 60% market share with Garoto.
