CADE approves Copel Telecom sale; unconcerned by Sercomtel overlap

13 Jul 2021

Brazil’s Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE) has approved the previously agreed takeover of Copel Telecom by the Bordeaux Fundo de Investimento em Participacoes Multiestrategia (Bordeaux Multi-Strategic Investment Fund). The takeover was approved ‘without restrictions’, despite Bordeaux’s ownership of fellow regional telco Sercomtel, which it acquired in December 2020.

CADE’s General Superintendence (Superintendencia-Geral, SG) has established that the Copel-Sercomtel tie-up will result in a horizontal overlap in 15 municipalities in the state of Parana. However, in 14 of these locations the combined market share of the two telcos will not exceed 20%; Tamarana was named as the exception.

On 9 November 2020 Copel Telecom was successfully auctioned via the B3 stock exchange in Sao Paulo. Bordeaux was named as the winning bidder, after committing to pay BRL2.395 billion (USD458.8 million) – a 70.94% premium on the BRL1.401 million minimum bid stipulation. The Share Purchase and Sale Agreement was duly signed on 14 January 2021.

Brazil, Copel Telecom, Sercomtel