The Administrative Council for Economic Defence (CADE), the competition authority of Brazil approved the acquisition, without restrictions, of 61 percent of the share capital of TAP by the Atlantic Gateway consortium, in an order published Monday in the country’s Official Gazette.
CADE considers that the financial transaction through a consortium made up of businessmen David Neeleman and Humberto Pedrosa, will not cause a horizontal overlap, although the airline Azul, founded by Neeleman, and TAP act in the same business area.
In the same order, the competition authority also argues that the operation will not pose a risk to the maintenance, repair and aircraft servicing market, since the main Brazilian airlines – TAM, Gol and Avianca Brasil – have their own maintenance centres.
The sale of TAP is still dependent on approval from the Portuguese Civil Aviation Authority, which will have to rule on the legality of the operation based on EU rules, which stipulate that an airline cannot be acquired by non-European citizens. (macauhub/BR/PT)