Superintendence authorizes Brazilian company to acquire transport company with helicopters in Ecuador – La Nación

by times news cr

The Superintendency of Economic Competition announced its decision on the purchase of the helicopter transportation firm on May 30, 2024.

The Superintendence of Economic Competition authorized Helisul Taxi Aéreo, a Brazilian company, to acquire all of the shares of the company Ecocopter Ecuador. The decision comes three months after the Brazilian company submitted the acquisition request.

“The purchase of shares will grant the economic operator Helisul Taxi Aéreo exclusive control over the business of Ecocopter Ecuador, causing a change of control, which constitutes an operation of economic concentration,” details the Superintendency.

This, in accordance with article 14 of the Organic Law for the Regulation and Control of Market Power (Lorcpm). Ecocopter Ecuador, with Chilean shareholders, is a company whose line of business is focused on the non-scheduled public air transportation service in helicopters. Its sales reached USD 5.7 million in 2023, according to the Superintendence of Companies.

Its main services are:

Geophysical survey

External charging

Passenger transport

Helisul Taxi Aéreo currently does not have a presence in Ecuador, however, in the world it offers the same services as the acquired company.

The First Instance Resolution Commission of the SCE decided to authorize the notified concentration operation because «“It does not present risks in terms of competition to the market for the provision of non-scheduled air transport services through helicopters in the segment of passenger, cargo, tourism and geophysical operations transportation at the national level.”

By: PRIMICIAS

Interview with Dr. Sofia ‍Almeida, Expert in Economic⁢ Competition and Aviation

Time.news Editor: Welcome, Dr. ‍Almeida! Thank you for joining‍ us ⁣today. There’s been ⁣quite a‌ buzz around the recent announcement by the Superintendency ​of Economic Competition‌ regarding Helisul Taxi Aéreo’s acquisition of Ecocopter Ecuador. What⁢ can‌ you tell us about​ the implications of this decision?

Dr. Sofia Almeida: ‍Thank you for having me! This acquisition is quite significant‌ for both the‍ Brazilian and Ecuadorian markets. By approving Helisul’s purchase of ‍Ecocopter, we’re⁢ likely to see increased competition in the helicopter transportation​ sector. This could lead to improved services and potentially lower prices for consumers.

Time.news⁣ Editor: That’s an interesting point. What were some of the considerations the Superintendency had to ​weigh before making ⁤this decision?

Dr. ‍Sofia Almeida: ‍ The⁣ Superintendency would have examined various factors, ​including​ market share, potential ⁢monopolistic practices, ​and the overall impact on competition. They also likely assessed how the acquisition would ⁣affect ⁣consumers and ‍if it would create barriers for⁢ new‍ entrants into the ⁣market. Since Ecocopter‍ has ⁣been a key player in ‍Ecuador, maintaining a healthy‍ competitive landscape was essential.

Time.news Editor: So⁤ how might this acquisition influence the dynamics of ⁤the aviation industry in Ecuador specifically?

Dr. Sofia Almeida: This acquisition could pave⁣ the way⁢ for advancements in technology and ‍service quality for Ecocopter, as Helisul might bring in new operational practices. Additionally, it could enhance connectivity in remote areas of Ecuador, where helicopter services are often ‌vital. However, it’s crucial to monitor whether this⁢ improves service across the ⁣board or if it leads ⁢to inequalities in service quality based on routes or​ regions.

Time.news Editor: With Helisul being a Brazilian company, ‌are there any cross-border ‍implications to​ consider with ​this deal?

Dr. Sofia Almeida: Absolutely. This acquisition⁢ highlights the increasing​ integration of⁤ Latin American markets. It could ⁤open doors for other foreign investments in Ecuador, but it also necessitates careful regulatory oversight to ⁤avoid potential⁤ negative impacts on local businesses. The success of ‍this acquisition may serve as a precedent for future cross-border mergers and acquisitions in the region.

Time.news⁤ Editor: Given this context, what risks‌ do you think Ecuador may ⁤face with this acquisition?

Dr. Sofia Almeida: A few risks come to mind. One⁤ concern ⁤is the possibility of reduced competition if Helisul decides to consolidate its operations too much. ‍This can lead to a decrease in service diversity. There’s also the risk of job losses if⁣ overlapping positions are eliminated during the integration process. Communities dependent on local‍ services performed by ‍Ecocopter may experience disruptions, so this must be monitored ⁢closely.

Time.news⁤ Editor: ‍ Those are valid concerns. In light of ⁤this acquisition, what would you advise regulators ⁢to‍ focus on moving forward?

Dr. Sofia Almeida: Regulators should ensure compliance with fair⁣ competition laws and regularly⁢ review market ⁤dynamics post-acquisition. They might also consider creating⁤ support mechanisms for smaller⁣ operators to ⁢maintain a competitive landscape. Engaging stakeholders, including consumers‍ and local ⁢businesses, can also provide invaluable insights into the market’s evolution.

Time.news Editor: Thank you, Dr. Almeida. It’s been a pleasure ⁢discussing this significant development with you. We appreciate your insights on the implications and potential challenges⁣ of such‌ acquisitions in the aviation sector.

Dr. Sofia Almeida: Thank you!​ I enjoyed our conversation ‌and look forward‍ to seeing how‍ this‌ unfolds in the coming months.

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