Localiza, Unidas Rally With Merger ‘One Step’ from Closing (1)

(Updates to market open.)

• Brazilian car-rental companies Localiza and Unidas jump in Sao Paulo Wednesday after the superintendency of Brazil’s antitrust agency Cade recommended the approval of Localiza’s acquisition of Unidas with remedies
• NOTE: Cade’s full panel will make the final decision by Oct. 6, but the deadline may be extended to Jan. 6, 2022
• Cade “positively surprised the market with softer-than-expected restrictions to approve this merger,” Bradesco BBI analyst Victor Mizusaki wrote in a report
  • Unidas will need to reduce its rent-a-car fleet size and sell some stores, while also canceling the non-compete with Vanguard Car Rental Group and ...