Localiza, Unidas deal approved in Brazil, but with conditions
Brazil's antitrust agency Cade has approved the acquisition of Unidas - the country’s second largest car rental and leasing company - by Localiza - the country’s largest player - on Wednesday (15 December), however with conditions.
While previous negotiations pointed toward a merger, the deal has now been approved as an acquisition of Unidas by Localiza, according to Cade.
Besides the selling of all Unidas shares and the prohibited use of the brand (by Localiza), Cade has demanded the selling of more than 70,000 vehicles as well as some agencies in cities where the group has excessive market share.
The shedding of assets is mainly associated with Rent-a-Car as opposed to Corporate Fleet, or to say long-term leasing.
Under these conditions, competition will remain in the market, according to Cade President Alexandre Corderio Macedo. “The new group will have less than 50% control of the market,” says Mr. Macedo, compared to the 72% market share previously estimated.
The newly formed Localiza group is expected to have a fleet of approximately 400,000 vehicles, being some 250,000 Rent-a-Car and 150,000 Corporate. The next largest company of its kind in Brazil is Movida with approximately 110,000 cars (73,000 Rent-a-Car and 37,000 Corporate).