La Cade gives its approval and the Localiza-Unidas merger will be finalized

With the green light from Cade, Localiza and Unidas expect to complete the business combination on July 1. (Disclosure/Localiza)

SAO PAULO (Reuters) – The Economic Defense Administrative Council (Cade) court on Wednesday approved a fund from Canadian manager Brookfield, which controls car rental company Ouro Verde, as the buyer of the assets divested as part of the the merger between the leaders of the Localiza sector and Unidas.

With the green light from Cade, Localiza and Unidas expect to close the business combination on July 1, the two companies said in a joint material fact.

The sale involves Unidas assets, including 49,000 cars, and was determined by Cade’s court in December as a condition for the deal, a merger between the nation’s two largest car rental companies, to receive l municipal approval.

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Brookfield agreed to buy the assets for around 3.6 billion reais, according to rental companies in mid-June.

Although the name of the buyer has been approved, the closing of the sale of the assets to Brookfield “remains subject to CADE’s approval, among other conditions, and will occur after the completion of the business combination”, said Localiza and Unidas.

(By André Romani)

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