CADE disapproves of Trevo’s purchase by Knauf

Summary:

The Brazilian Tribunal of Administrative Defense Economic Council (Cade) has unanimously rejected the sale of Trevo Industrial's drywall plate factory to Knauf do Brasil. The decision was made on April 17th during the 228th Ordinary Sessu00e3o Ordinu00e1ria de Julgamento. The council's conselheiro-relator, Victor Oliveira Fernandes, highlighted that the market for drywall plates has limited substitutes and only four major suppliers, including Knauf and Trevo. Despite the market growing by over eight times between 2006 and 2022, no new competitors entered the market in recent years. The council also noted that the proposed remedies to address competitive risks were insufficient to mitigate potential harm to the competitive environment, leading to the rejection of the operation. The decision aims to preserve competition in the market, particularly in the Northeast region of Brazil, which has significant growth potential for the demand.