Particle.news
Download on the App Store
3 ARTICLES
·
6mo ago

Cade Chief Halts Fast-Track, Admits Consumer Group in Azul–United Investment Case

The case moves to a Tribunal rapporteur for possible extended scrutiny of competition risks.

Image

Overview

  • The Cade president provisionally admitted IPSConsumo as a third party in the review of United’s planned investment in Azul.
  • The decision suspends the Superintendência-Geral’s December 30 favorable opinion while the Tribunal considers the challenge.
  • A rapporteur will be assigned for deeper examination, and a full Tribunal review could run up to 240 days if the admission is confirmed.
  • IPSConsumo argues combined minority stakes and a new five-member Strategic Committee with two seats for U.S. airlines could enable coordinated conduct, citing United’s reported 8.8% in Azul and 8.8% in ABRA.
  • Sources say Azul is waiting on the United ruling before filing American’s similar US$100 million investment, while the airline also disclosed plans to issue notes via Azul Secured Finance LLP to refinance restructuring debt.