The owner of two strategic soy crushing plants in southern Brazil has appealed to the country’s antitrust body for a probe into a signed supply deal between US-based grains trader Bunge and brewer Cervejaria Petropolis which is leasing the facilities.
According to Reuters, in documents filed with regulator CADE late on Monday, the plants owner Imcopa said the deal falls foul of antitrust laws because the parties involved were already working together to implement it before they sought CADE’s approval.
Bunge, in a response to Reuters, said: “The parties are following all legal requirements for the full implementation of the transaction.”
Bunge previously tried to buy the plants but the deal fell through. The assets are coveted because they produce high value soy byproducts for export using non-genetically modified grains. One plant is also close to Paranagua, a key port in southern Brazil.
Imcopa accused Bunge of trying to hide the true legal nature of the contract with Cervejaria Petropolis, which it said goes beyond a simple supply deal and grants Bunge control over the assets.
Under the two-phase agreement, signed in August 2021, Bunge would supply soy and soy molasses to Cervejaria Petropolis. The brewer, in turn, would supply processed products for Bunge, according to CADE filings describing the operation.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI