Brazil’s antitrust authority, the Conselho Administrativo de Defesa Econômica (Cade), has approved, under certain conditions, AT&T’s pending acquisition of Time Warner. The merger approval was conditioned to the signing of a Concentration Control Agreement (ACC in Portuguese) in order to avoid risks to competition.
Among the conditions, the ACC – which has a term of five years – states that companies must continue to operate separately, without exchanging sensitive information. In addition, the companies will have to allow external auditors to accompany the fulfillment of obligations and the use of arbitration to avoid discrimination in relation to prices and contract terms, Teletime reported. The USD 85.4 billion transaction is still subject to approval by Brazil’s telecom regulator, Anatel.
“We appreciate the hard work by Cade to review and evaluate the AT&T-Time Warner merger and approve it based on its benefits to Brazilian consumers,” said in a statement David McAtee, Senior Executive Vice President and General Counsel at AT&T.
As with the approvals obtained in Chile and Mexico, Cade approved the merger with targeted conditions to address specific issues it identified. Cade’s approval does not require the sale or divestiture of any AT&T or Time Warner assets, the company explained in its statement. Meanwhile, the transaction remains under review by the U.S. Department of Justice. AT&T expects the transaction to close by the end of 2017.