Brazil’s competition watchdog CADE has launched an investigation into BRF following the merger between Sadia and Perdigao that formed the business.
The combination of Sadia and Perdigao was announced in 2009 but the formal signing-off of the merger was on hold for two years as CADE assessed if the deal would be detrimental to competition.
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In 2011, CADE endorsed a plan that saw BRF sell production assets, offload brands and restrict its use of products under the Perdigao brand in return for approval of the deal.
However, CADE alleges BRF may have violated the terms of that agreement.
In an email to just-food yesterday (21 July) a spokesperson for CADE said: “CADE has been monitoring the performance agreement (TCD) signed by BRF in 2011 and detected a possibility of noncompliance with the agreement. During the months of April and June 2014 there were identified alleged online advertisements in supermarkets websites of Perdigão’s products that should have been with a suspended sale, according to the TCD. CADE is still analysing the facts and has already officiated BRF.”
Nevertheless, BRF has denied any wrongdoing. It said it “strictly follows” the rules established in the agreement, including the suspension of production and sales of certain products under the Perdigão brand.
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By GlobalData“BRF will send CADE all the necessary information during the established deadline to validate its conduct,” it said.
