The majority of councilors at Brazil’s antitrust watchdog Cade on Wednesday voted to reject Ultrapar Participacoes SA’s proposed acquisition of rival fuel distribution company Alesat Combustiveis.
Five of the seven Cade councilors voted to block the deal. The rapporteur of the case, Joao Resende, had said Ale, as the company is known, did not agree to a proposal to sell assets in 12 states to obtain the approval.
The asset sale would represent divestiture of 65% of the company’s revenue, Resende said in his vote. The session to discuss the deal is ongoing.
Ultrapar’s fuel distribution unit, Ipiranga, announced its proposed acquisition of Ale for 2.17 billion reais (US$696 million) in June. Ipiranga is the second-largest fuel distributor in Brazil.
Full Content: Reuters
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