Cade, Brazil's antitrust watchdog, on Friday began an analysis of a request by Empresa Brasileira de Correios e Telégrafos SA, the state-run post office, to buy a minority stake in a cargo airline, according to a Correios statement. It has 13 airlines as contractors for courier and cargo services, but is looking to overhaul the system, following recommendations of Brazil's comptroller general and another agency charged with overseeing budget spending.
Of the four companies being considered, Correios submitted Rio Linhas Aéreas SA as a potential target. "Under terms of the proposal sent to Cade, Correios would have a relevant stake" in Rio Linhas Aéreas, according to the statement. The transaction would require the approval of three cabinet ministries. A deal could close during the second half of the year.
No details on the bid or the size of the deal were immediately known.