The Mexican baking group had proposed the purchase and requested authorization for economic concentration from the Competition Commission.

The Competition Defense Commission denied Grupo Bimbo the purchase of Pagnify on the grounds that the transaction would reinforce the dominant position of the Mexican group in the market . The decision was made known the same day that the operation between the Brazilian meatpackers Minerva and Marfrig was also rejected.

  In the request for authorization of economic concentration, the two companies stated that after the transaction the market would remain deconcentrated, since Grupo Bimbo does not have a dominant position in the relevant markets in which it participates and Pagnitify is a minor player. Therefore, the concentration would not generate competitive problems and would also generate relevant efficiencies.

To evaluate the impact of the purchase, the commission analyzed the possible anti-competitive effects and the associated efficiency gains in the operation considering that the projected transaction takes place in a market that is already highly concentrated.

He explained that the larger the market share of a company "the more likely it is to have power and the larger the sum of shares, the more likely it is that a concentration operation will give rise to a significant increase in market power."

He added that the sale would lead to the formation of a company that would have a participation in the sector of approximately 70% .

He considered that if the operation were carried out, Grupo Bimbo's dominant position would be reinforced , with the capacity to unilaterally affect competitive variables in a negative way. There it listed a possible price increase, the decrease in quality or variety levels offered to its customers or the option of developing commercial strategies or other collusive practices towards its competitors .

The commission expressed that the acquisition by Grupo Bimbo is not the only way for the Mexican company to expand in the segments in which Pagnitify carries out its activity.

For these reasons, it decided to deny the request for economic concentration made for the purchase of Bimbo from Pagnify.