Post on 01-Aug-2020
Activities report 2016
January 2017
Mergers
691 684626
377426 404 381
0
100
200
300
400
500
600
700
800
2010 2011 2012 2013 2014 2015 2016
(*) In 2012, 143 mergers were notified under the new competition law, Law 12,529/11.(**) In 2016, there were 5 notifications of M&As under the previous law, Law 8,884/94.
Merger and acquisition notification filings (Law 12,529/11)
6 2%
19 5%
5 1%
360 92%
Approved without restrictions (353 by GeneralSuperintendence and 7 by the Tribunal)
Approved with restrictions (5 with agreementsand 1 with restrictions - Tribunal)
Rejected Cases (Tribunal)
Non-Admissible Files - out of scope (GeneralSuperintendence)
Filed (Tribunal + General Superintence)
Merger and acquisition proceedings per type of decision(both Laws 12,529/11 and 8,884/94)
Total = 390*
* Includes M&As approved without restrictions, approved with restrictions , non-admissible files (out of scope) and filed. There were no rejected cases by the Tribunal.
Mergers and acquisitions: inputs and outputs (Laws 12,529/11 and 8,884/94)
389 390
0
50
100
150
200
250
300
350
400
450
500
Inputs
Outputs
Other statistics related to M&As2012 2013 2014 2015 2016 TOTAL
DECISIONS OF THE GENERAL SUPERINTENDENCE 114 351 423 405 382 1675
SUBMITTED MERGERS AND ACQUISITIONS 140 380 428 406 384 1738
ORDINARY PROCEEDINGS / SUBMITTED M&As (%) 12.3% 10.9% 17.1% 13.4% 23.3% 15.9%
APPROVALS WITHOUT RESTRICTIONS * / SUBMITTED M&As (%) 95.6% 99.1% 96.5% 94.6% 92.7% 95.8%
CONTESTED CASES – 2nd PHASE 2 4 10 7 9 32
GUN JUMPING 0 3 2 2 1 8
NON-ADMISSIBLE FILES (Out of scope) 5 2 7 18 19 51
APPEALS BY THIRD PARTIES 0 0 9 6 4 19
STATEMENT OF COMPLEXITY 1 4 5 5 8 23
AMENDMENTS 10 30 44 44 33 161
ORDERS THAT CONVERTED FAST-TRACK INTO ORDINARY PROCEEDINGS 6 18 18 16 20 78
AMENDMENTS / SUBMITTED M&As (%) 7.0% 7.9% 10.2% 10.5% 8.4% 9.1%
AMENDMENTS OF FAST-TRACK PROCEEDINGS / FAST-TRACK PROCEEDINGS (%) 1.7% 3.6% 8.8% 8.6% 6.8% 6.5%
AMENDMENTS OF ORDINARY PROCEEDINGS / ORDINARY PROCEEDINGS (%) 47.1% 43.9% 17.8% 25.9% 14.6% 24.1%
AMENDMENTS OF M&As NOTIFIED AS ORDINARY PROCEEDINGS / ORDINARY PROCEEDINGS (%)
17.6% 12.2% 5.5% 11.1% 2.2% 7.3%
*Note: Approved without restrictions exclude: contested cases, gun jumping, non-admissible files and withdrawns.
Contested mergers and acquisitions(2nd phase)
2
4
10
7
9
2012 2013 2014 2015 2016
Main M&As of 2016
- Unipar-Carbocloro/Solvay
- BM&FBovespa/Cetip
- John Deere/Precision Planting
- New Credit Bureau
- Latam/IAG
- Hypermarcas/Reckit Benckinser
- Bradesco/HSBC
- JV Itaú/Master
- Saint-Gobain/Sicbras
- Fedex/TNT
Average time of merger and acquisition’s assessment(General Superintendence + Tribunal)
40
70.4
7984.7
73.8
18.7 19.4 20.5 18 16
154
20.926.4
30.2 27.7 27.6
0
20
40
60
80
100
120
140
160
180
2011 2012 2013 2014 2015 2016
Day
s
Year
Ordinary Fast-track Total
Average time of M&A ordinary proceedings’ assessments in the General Superintendence
40
63.966.7 70.7 68.1
40
54 55.664.3 59.4
0
159
131
117
133
0
20
40
60
80
100
120
140
160
180
2012 2013 2014 2015 2016
Day
s
Ordinary Proceedings Excluding contested cases Contested cases (2nd phase)
Administrative procedures for merger assessment andcomplaints
2015 2016
Received complaints * 82 163
Filed complaints 66 99
Initiated administrative procedures 5 8
Filed administrative procedures (no notification required) 4 4
Administrative procedures which decisions required a notification: 2 10
Gun Jumping – Law 12,529/2011 0 4
CADE’s requirement of ex-post notification (article 88, paragraph 7º) 0 1
Lateness – Law 8,884/94 2 5
* Considers 3 statements of a transaction submitted by the parties to the General Superintendence, in 2016.
Anticompetitive Conducts
Proceedings under analysis at the General Superintendence
320
232 242 238
275
jan/12 jan/13 jan/14 jan/15 jan/16
Development per year33
45
47
101
47
2Complaint
Preparatory Procedure
Administrative Inquiry
Administrative Proceeding
Request
Administrative Proceeding forthe Imposition of IncidentalProcedure Sanctions
Inputs and outputs – General Superintendence
789 complaints were received by the “report a violation” website tool
Development per type of proceeding
Balanced stockpile ofproceedings
25
116
160
244
246
67
228
152
221
258
2012 2013 2014 2015 2016
Development per year
Inputs
Outputs
147
18 8 10
60
3
246
116
3921 29
47
1 1
258
Inputs
Outputs
Administrative Proceedings (PAs) – General Superintendence
Development per year Result of the opinions issued regarding PAs
30
5
14
21
37
26
206
56
4039
29
2011 2012 2013 2014 2015 2016
Inputs
Outputs
34
27
20
6
129
2014 2015 2016
Condemnation
Filing
General Superintendence opinions issued related to Cease andDesist Agreements (TCCs) and Administrative Proceedings (PAs)
Opinions on administrativeproceedings sent to the Tribunal
recommending:
Condemnation 20
Filing of theProceeding
9
TCCs approval 47
Condemned
26%
Filed
12%
Approved TCC62%
2016
Condemned25%
Filed75%
2012
Condemned72%
Filed25%
Approved TCC3%
2013
Condemned66%
Filed14%
Approved TCC20%
2014
Condemned41%
Filed18%
Approved TCC38%
TCC completion
2%
2015
Main Administrative Proccedings initiated andconcluded by the General Superintendence in 2016
Initiated
- Cartel – Exchange rates BRL
- Cartel – Real estate brokers
- Cartels – Auto-parts
- Cartels – Liquefied Petroleum Gas
- Cartel – Public bids in municipalities of theState of Pernambuco
- Cartel – Resins
- Cartel – PVC Pipelines
- Cartel – Shipping and line maritime routes
- Cartel – Wheat flour
- Cartel – Public bids in public works in poorneighborhoods of Rio de Janeiro
Concluded
- Gemini/White Martins/Petrobras
- ANFAPE
- Cartel – Mobile recharge market
- Cartel – Gas Stations in the city of São Luís
- Cartel – DRAM
- Cartel – ODD
- Cartel – Parking lots in São Paulo
- Cartel – Flexible packaging
- Cartel – Chlorine
Duration of proceedings – General Superintendence
* Approximate Time
Time reduction of the proceedings
49%
57%
67%
25%
5%
67%73%
78%
17%
3.69%
66%73%
79%
13%
0.73%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Up to 1 year Up to 2 years Up to 3 years More than 5 years More than 10 years
2014
2015
2016
Leniency• Leniency agreement applications:
requests for markers increased510% (granted and waiting list).
• 11 new leniency agreements havebeen signed (historical record).
• 6 leniency plus have beengranted (historical record).
• For each Leniency Agreement, one or more were rejected orwithdrawn.
• In 90% of the cases, theapplication for a Cease and DesistAgreement was a posteriori.
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Leniency Plus 3 6
Addenda 1 2 1 1 4 5 6
Leniency Agreements 1 1 1 4 1 2 4 8 1 10 1 6 10 11
1 1 1
4
1 24
8
1
10
1
6
10 111
2
1
1
4
5
6
3
6
0
5
10
15
20
25
Dawn raids
2
1
0
4
5 5
1
4
1
6
2
5
2 2
0
1
2
3
4
5
6
7
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inputs/outputs of proceedingsand judgments – Tribunal
Inputs in 2016 – Tribunal
Total 5
3 3
54
65
1
3
23
4
4
1
1
1
1
1
1
1
2
1
1
1
1
0
2
4
6
8
10
12
14
Márcio de Oliveira Gilvandro de Araujo Alexandre Cordeiro João Paulo Paulo Burnier Cristiane Alkmin
Merger Review
Appeal
Administrative Proceeding for theImposition of Incidental ProcedureSanctions
Consultation
Administrative Procedure for MergerAssessment
Merger
Administrative Proceeding
13
11 101
9 9
Inputs/outputs of proceedings – Tribunal
* Proceedings with pending judgment of motions for clarification were not considered.
Total 1
1
2
3 3
2
51
1
2
1
1 1
2
0
1
2
3
4
5
6
7
8
9
10
Márcio de Oliveira Gilvandro de Araujo Alexandre Cordeiro João Paulo Paulo Burnier Cristiane Alkmin
Request to access the case records
Consultation
Merger
Administrative Proceeding
4 4 5 2 8
Proceedings judged by theTribunal
* The procedures concluded by decision orders approved by the Plenary and the procedures brought to judgment by the President were not considered.
Total 24 22 16 11 20 10
9
7
45
4
1
1
2
2
2 4
5
2
2
2
5
3
1
1
1
21
1
1
2
1
1
1
1
1
1
1
7
6
5
3
3
1
1
1
0
5
10
15
20
25
30
Márcio de Oliveira Gilvandro de Araujo Alexandre Cordeiro João Paulo Paulo Burnier Cristiane Alkmin
Request for review
Motions for Clarification
Preliminary Investigation
Precautionary Measures
Merger Review
Appeal
Administrative Proceeding for the Imposition of IncidentalProcedure Sanctions
Consultation
Administrative Procedure for Merger Assessment
Request
Merger
Administrative Proceeding
14 15 12 16 1813 12
41 2
22
3939
19
0
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015 2016
Condenmed
Filed
Judged administrative proceedings – Tribunal
Cease and Desist Agreements (TCCs)
11
3 5
53
36
5861
0
10
20
30
40
50
60
70
2010 2011 2012 2013 2014 2015 2016 (54 Approved + 6 Rejected + 1 out of scope)
Note: Out of the 54 approved aplications, 47 were negotiated by the General Superintendence.
Highlights – pecuniarycontributions:
- Cartel – Exchange rates (off shore) BRL 121,010,000.00
- Cartel – OrangesBRL 300,888,712.34
Main judged administrative proceedings in 2016
- Liquified Petroleum Gas (LPG) in the State of Pará- DRAM- Special foods- Hemoderivatives- Refrigerator compressors- Sodium perborates- Bid-rigging in hospital laundry services- CRT Glass- Cartel of antiretroviral drugs- Ports in the States of Bahia and Rio Grande do Sul (unilateral conducts)- Marine hose cartel (individuals)- Radius Clause- Gemini Consortium
Imposed fines and pecuniary contributions
Development of the imposed fines in Administrative Proceedings
Development of the Pecuniary Contributionsresulted from Cease and Desist Agreements
BRL 492,011,098
BRL 3,321,733,616
BRL 286,890,096BRL
196,637,612
2013 2014 2015 2016
BRL 101,671,132
BRL 41,615,069
BRL 168,493,150
BRL 466,834,865
BRL798,943,417
2012 2013 2014 2015 2016
Collection to the Fund for the Defense of Diffuse Rights (FDD)
25, 361,528 31,285,152 45,420,59891,857,098
169,098,785
523,954,270
700,381,945
0
100.000.000
200.000.000
300.000.000
400.000.000
500.000.000
600.000.000
700.000.000
800.000.000
2010 2011 2012 2013 2014 2015 2016
BRL
BRL
BRL
BRL
BRL
BRL
BRL
BRL
Collection to the FDD per type of proceeding
2016
Plea agreement BRL 5,448,408.79 0.78%
Voluntary payment BRL 20,286,402.74 2.90%
Cease and DesistAgreement – TCC
BRL 651,809,063.05 93.06%
Merger Control Agreement– ACC
BRL 18,899,221.06 0.56%
Merger Control Agreement– TCD (under Law 8,884/94)
BRL 3,938,850.23 2.70%
TOTAL BRL 700,381,945.87 100.00%
Other institutionalinformation
32
Resolutions and guidelines
TCC Guidelines
CompetitionComplianceGuidelines
LeniencyGuidelines
Horizontal MergersGuidelines (availableonly in portuguese)
New resolutions:
₋ Amendments of CADE’s Internal Regulation (RICADE) regarding TCCs, leniency plus etc.
₋ Establishment of 30 days deadline to complete the analysis of fast-track mergers
₋ Amendment of the Resolution n. 3 to enable a greater proportionalityin the fines calculation basis
₋ Regulation of the notification for associative contracts
₋ Memorandum of Understanding with the Federal Prosecution Service of the State of São Paulo
₋ Regulation of the activities of CADE’s Representative of the Federal Prosecution Service
Public consultation:
₋ Access to confidential documents and private antitrust damageactions
33
Attorney General’s Office
40
75 81
221
197
39
89
5365
143
0
50
100
150
200
250
2012 2013 2014 2015 2016
Comparative lawsuits per year
Lawsuits submitted by CADE Lawsuits against CADE
Relevant Cases in 2016: ₋ UBER₋ CSN/USIMINAS₋ Gemini Consortium
71% 69%
82%
69% 70%
29% 31%
18%
31% 30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2012 2013 2014 2015 2016
CADE’s decisions upheld by the Judiciary
Favourable Decisions Unfavourable Decisions
34
Departament of Economic StudiesRelevant cases:₋ Fuel cartels (improvement of screening instruments for cartel detection)₋ Exchange market – offshore (pecuniary contribution calculation method)₋ Reckitt-Hypermarcas (simulation of mergers and remedies)
Contributions:₋ Ministry of Mines and Energy (MME): “Competition environment in the
petroleum refining industry and liquid fuels distribution market: CADE’s contributions”
₋ Secretariat of Partnerships and Investment Plan (PPI): “Measures to enhance competition in public bids: CADE’s contributions”
₋ Institute for Applied Economic Research (Ipea): resumption of the partnership and definition of the Work Plan
Studies Awarded:₋ Competition Analysis of the Uber case: honorable mention at the 2015-
2016 Advocacy Contest, promoted by the International Competition Network (ICN) and the Word Bank Group
Oil and Gas 32%
Chemicals 17%
Transportation 14%
Health and
Education11%
Financial market
9%
Others 17%
65 Publications
More than 80% of increase in the number of technicalopinions, compared to the average of 2009-2015
35
Management Office
Expansion of the eletronic services:
₋ Consultation request₋ Oral argument request₋ Request of priority in a judgment session
Concluded Projects:₋ New website₋ CADE in figures₋ Voting Panel
417
41 41 3944 41 47 48 4249 50 51 557163
37 38 42 51
160 145177 186 203
0
50
100
150
200
250
2012 2013 2014 2015 2016
Development of the Workforce
CADE’s civil servants Position of Responsability (for non-civil servants)
Federal Public Policy and Management Officers Civil servants from other bodys
Total Linear (Total)
89,9% 93,9% 93,8% 88,3%99,7%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
R$-
R$5.000.000,00
R$10.000.000,00
R$15.000.000,00
R$20.000.000,00
R$25.000.000,00
R$30.000.000,00
2012 2013 2014 2015 2016
Budget Execution
Dotação Execução LOA % Executado