(CADE) November 20, 2012 – Cade’s General Superintendence formally recommended on Tuesday 20 the approval of PBKids purchase by Ri-Happy. The transaction involves the acquisition of all of the voting capital of PBKids, PBKids Brinquedos and PBKids.com Ltda. The transaction was submitted to Cade on June 19, 2012, still under Law 8.884/94.

According to the General Superintendence’s official opinion, the operation does not create risks to competition in the sector, because there is an absence of barriers to significant entries in this market also there is enough rivalry to deter any attempts to overpower the market. This rivalry is attributed to competition imposed by large multiproduct retailers that offer a wide range of consumer goods, which includes toys capable of challenging the toy market. Moreover, the domestic market for toys has shown high growth in recent years, favoring the entry of new competitors in the industry.

The process now will be handed to a Reporting Commissioner who will take it for trial before Cade.