- Cade approved the acquisition without restrictions, understanding that the deal does not represent any risk to the market;
- The transaction had faced objections from counterparts such as Cielo, Safra and Adyen.
The court of the Administrative Council for Economic Defense, Cade, the regulatory antitrust body in Brazil, approved on Wednesday the acquisition of software provider Linx by payments company Stone, without restrictions, understanding that the business poses no risk to the market.
“The operation deserves to be approved without restrictions, as concluded by the SG (Cade’s General Superintendence),” said the rapporteur of the case, council member Sergio Ravagnani, in a session broadcast online. He added that the companies do not have the ability to close the market and that Linx is “not in a position to influence acquiring solutions contracted by clients” as a result of the operation.
The transaction has faced objections from counterparts such as Cielo, Safra and Adyen, who cited, according to the rapporteur’s reading, that Linx software customers could be forced to migrate their payment solutions to Stone.
The acquisition of Linx, whose bid was announced in August last year, is likely to transform Stone into an integrated software and payments provider at a time when new rivals and new technologies – such as the PIX instant payments platform launched by the Central Bank – are transforming the payments industry in Brazil.
At 4:15 p.m. Linx shares were down 0.2%, while Stone’s shares in New York were down 2%. In the same period, the Ibovespa was down 0.5%.
Translated by LABS