SAO PAULO May 14 Brazil's antitrust watchdog
Cade on Wednesday approved Kroton Educacional SA's
$2.5 billion takeover of rival education company Anhanguera
Educacional Participações SA with several
Under terms of a Cade accord with both companies, the entity
resulting from the merger - which will become the world's
largest for-profit education firm according to some analyst
estimates - will be required to sell Centro Universitario
Leonardo da Vinci. Both firms also committed to spend more on
teacher training, a joint securities filing said.
The Leonardo da Vinci unit operates a distance-learning unit
and two other colleges, according to the filing. The combined
entity must also limit the number of distance-learning students
they take on in some Brazilian cities, with the restriction in
place until 2017.
The transaction, which was announced in April 2013, had
faced several headwinds. These included strict Cade scrutiny and
an atypical share price movement, which made the deal too
expensive for Kroton to afford at one point.
Anhanguera shares rose 0.9 percent to 16.13 reais in
Wednesday trading while Kroton shares shed 1.8 percent to 54.93
(Reporting by Asher Levine; Editing by Guillermo Parra-Bernal
and Tom Brown)