Nestlé has received the green light to acquire Garoto more than two decades after signing an agreement to buy the Brazilian chocolate maker.
The world’s largest food maker struck a deal to acquire Garoto in 2002 but has been awaiting full competition clearance.
Nestlé has been able to keep investing at the Garoto production site in Vila Velha in eastern Brazil, although it has had to keep management separate.
However, Brazil’s anti-trust body, the Administrative Council for Economic Defense (Cade), has approved the deal with conditions.
A spokesperson for Nestlé’s Brazilian business said the “main terms” of the agreement included the KitKat maker having to keep the Garoto factory “open and fully operational” for at least seven years.
Nestlé, which will not have to sell off any assets, has pledged not to acquire brands or companies with at least a 5% share of Brazil’s chocolate market, as per Nielsen data, for five years, the spokesperson added.
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During 2023 and 2024, Garoto plans to invest 430m reais ($88.4m) in its production capacity and innovation. That package follows 270m reais of investment over the last two years, the spokesperson said.