Cade Publishes Guidance On How To Avoid Risks Of Gun Jumping

The Administrative Council for Economic Defense ("Cade") published last Wednesday (May 20, 2015) the "Guidance for Analysis of Prior Consummation of Transactions" ("Guidance").  The Guidance, which is non-binding, aims at orienting the conduct of companies during the negotiation and implementation of transactions subject to Cade's prior approval.

Since the entry into force of Law No. 12,529/11, on May 29, 2012, transactions requiring antitrust premerger filing shall not be consummated prior to Brazilian antitrust authorities' approval.  Nonetheless, the specific scope of such prohibition has been decided by Cade only on a case-by-case basis, remaining many uncertainties regarding the acts and practices that would lead to an early and improper consummation of a transaction (the so-called gun jumping).