CADE evaluates commercial strategy of construction materials companies

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Summary:

The Brazilian Administrative Council for Economic Defense (Cade) analyzed a consultation presented by Cassol and Todimo, companies involved in the construction materials sector, regarding a joint strategy for negotiating general supply conditions with their main suppliers nationwide. The strategy involves creating a Purchasing Committee to negotiate with suppliers, with autonomy to contract suppliers, process orders, and manage inventories. Cade concluded that the strategy appears to be lawful from a competitive standpoint and is not considered a cartel. The council members agreed that the absence of evidence of monopoly power, the companies' non-competitive geographic presence, and the characteristics of the contract and market mitigate the risk of sharing competitively sensitive information. The decision does not prejudice Cade's oversight of structures and allows for future investigation in the event of non-compliance with the agreed-upon terms.

Document ID: 08700.001177/2024-23