Cade approves Muffato brothers' 12% stake in Assaí

Brazil's antitrust authority, the Administrative Council for Economic Defense (Cade), cleared brothers Ederson and Everton Muffato to keep investing in cash-and-carry chain Assaí and to exercise political rights tied to their shares. The regulator approved without restrictions the acquisition of roughly 12% of Assaí that the owners of retail chains Super Muffato and Max Atacadista assembled on the stock exchange starting in the first quarter of 2025. Once pending derivatives are settled, the brothers consolidate their place among the largest shareholders of the company.

The decision followed more than 140 days of analysis. Cade treated the transaction as a merger and mapped geographic overlaps around 66 Assaí cash-and-carry stores across 20 municipalities in São Paulo and Paraná. In 54 of those 66 markets, the combined market share exceeded 20% with a material increase in concentration, reaching between 60% and 70% in areas surrounding stores in Foz do Iguaçu, Londrina, and Presidente Prudente. Technical staff concluded that no material competitive risk existed after surveying 87 sector companies, citing recent market entries, expansion plans from rivals, revenue growth, and competition from regional chains and Carrefour, owner of Atacadão.

The clearance noted commitments from the Muffatos that the two companies will continue to operate independently without sharing sensitive information and with limited political powers. Cade warned that any breach harming competition remains subject to retroactive investigation. Holding over 10% of capital allows the brothers to request multiple voting at shareholder meetings to seek at least one board seat, though company bylaws bar individuals holding positions at competitors unless granted an assembly waiver. Third parties may challenge the decision or Cade's tribunal may take it up within 15 days, after which it becomes definitive.