Brazilian regulator CADE approves sale of Copel Telecom

Brazilian regulator CADE approves sale of Copel Telecom

Brazil’s antitrust regulator CADE has given its unconditional approval for the acquisition of Copel Telecom, the telecommunications subsidiary of Paraná state power firm Copel, by local investment fund Bordeaux.

The value offered by Bordeaux in the auction held in November 2020 on the B3 was R$ 2.39 billion (US$460mln) and will be updated by the Selic rate until the date of its settlement.

"In addition to the final and unappealable decision of CADE, the completion of the operation is also subject to the verification of other conditions precedent, under the terms established in the contract," Copel said in a statement.

The decision of the antitrust body will become final 15 days after publication in the Federal Official Gazette, which also took place last Friday.

CADE's General Superintendence (Superintendencia-Geral, SG) even consulted the market due to the fact that the telecommunications group formed by Bordeaux, which also acquired Sercomtel last year, has more than 20% market share in some cities in Paraná.

The fund bought the telecommunications arm of Paraná in December 2020, after an auction disputed inch by inch with the Minas Gerais operator Algar Telecom. The Share Purchase and Sale Agreement was duly signed on 14 January 2021.

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