Brasil Foods Shares Up As Merger Finally Approved

摘要

Shares in Brasil Foods surged by over 14% between July 12 andnJuly 14 after the country’s antitrust regulator, Cade, ruled that itnwould allow the merger that created the firm to go ahead. The rulingnrequires the firm to sell off a significant chunk of its manufacturingncapacity and relinquish the use of several key brands. However, thendeal is being greeted very positively by investors due to earlier signsnthat Cade was looking unfavourably on the merger. Brasil Foodsnnow looks in a strong position to increase its revenue and earningsnin one of the world’s fastest growing consumer markets. However,nthe fact that the firm’s share price remains below recent highs suggestsnthe conditions attached to the merger will have a significantnimpact on its ability to dominate the market.