Bloomberg News

Brazil’s Cade Allows Gol, Webjet to Combine Some Operations

October 26, 2011

(Adds value of acquisition in third paragraph.)

Oct. 26 (Bloomberg) -- Brazil’s antitrust regulator, known as Cade, approved an agreement allowing Gol Linhas Aereas Inteligentes SA and Webjet Linhas Aereas SA to combine some of their operations before a planned merger, Ricardo Ruiz, a member of Cade, said in Brasilia today.

The agreement allows the two companies to share flight routes and doesn’t yet permit them to integrate their administrative functions or assets, Ruiz said.

Gol paid 70 million reais ($40 million) for 100 percent of Webjet, the Sao Paulo-based company said in a regulatory filing Oct. 3. The acquisition is still subject to final approval from Cade and may subsequently be reversed, Ruiz said.

Gol rose 1.7 percent to 13.29 reais in Sao Paulo trading at 10:26 a.m. New York times while the benchmark Bovespa index gained 0.4 percent to 56,537.30. The company shares have lost 47 percent this year.

--Editor: Helder Marinho

To contact the reporter on this story: Mario Sergio Lima in Brasilia at mlima11@bloomberg.net Karen Eeuwens at keeuwens@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net.


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