CADE should suspend Gol's purchase of Webjet.
This is according to a report in Valor Econômico in today's edition; according to advisors, the Webjet brand could not disappear from the market, as announced by Gol.
247 – A report in the Valor Econômico newspaper published this Wednesday, the 13th, states that the purchase of Gol by Webjet should be temporarily suspended by the Administrative Council for Economic Defense (Cade) of the Ministry of Justice. Due to the suspension – which aims to maintain current competitive conditions in the sector – Gol should be prohibited from eliminating the Webjet brand, a plan announced by the company last Monday, the 11th.
The situation will remain until both companies submit the necessary documents so that CADE (Brazil's antitrust authority) can assess the effects of the deal. The analysis will involve the consequences for consumers, other airlines, and the aviation market. The suspension of the acquisition operation will be discussed among CADE's board members in agreement with Gol.
Two points of concern for CADE (Brazil's antitrust agency) are the formation of a duopoly in the aviation sector, with the acquisition of the fourth largest company by the second, and the slots – time slots for landings and takeoffs, which must be similar among competing companies to ensure competition. This issue will be discussed by CADE, which suspects that this was Gol's main point of interest in Webjet. The Valor Econômico report cites an observation from a board member who stated that Gol paid R$ 310 million for Webjet, of which R$ 214,7 million was debt, indicating that the slots were indeed the main interest.