CADE, Brazil's antitrust commission, has frozen the merger of Brazil's largest food processors, Perdigao and Sadia, which may create the world's largest producer and exporter of processed meat.

The merging parties entered into a hold separate agreement with CADE ('Preserving Operation Reversibility Agreement'), restricting integration and information sharing among the firms and assuring that irreversible measures resulting from the transaction will not be implemented before the review is concluded.

The agreement, however, allows for financial restructuring of Sadia which has been financially distressed since last year.

Lanna Peixoto Advogados (LP) - Antitrust Practice Group

For further information, please contact Bruno Peixoto at bpeixoto@lpglobal.com.br or +55 11 5185-2848