Steelmakers' antitrust probe injunction overturned

A Brazilian federal court has overturned an injunction filed for by steelmakers that had stopped a probe by antitrust investigators into the alleged forming of a cartel, local papers reported. The head of antitrust investigator SDE, Daniel Goldberg, coordinated the legal action that resulted in the injunction being revoked. Belo Horizonte-based long steelmaker Belgo-Mineira requested the injunction against a preliminary legal opinion drawn up by the SDE. The company's lawyers said that the SDE had acted incorrectly in the process and had made a "pre-judgment." But Goldberg successfully refuted the arguments. "In the first place, the SDE does not make judgments. It just presents legal opinions. In the second place, in these processes I am obliged to anticipate my preliminary conclusions so that the accused can defend themselves," the SDE head was quoted as saying in business daily Valor Economico. The accused steelmakers, which also include Porto Alegre-based Gerdau (NYSE: GGB) and Barra Mansa (part of the Votorantim industrial group,) must respond to the SDE's legal opinion before it is sent to antitrust authority Cade. Cade will make a final decision on the case and could impose penalties of 1-30% of a company's revenues. "Preliminarily, it appears that there are signs of a formation of a cartel. I am absolutely open to changing my decision if the steelmakers provide proof and arguments that show there is no cartel. But it is strange that they seek to suspend the judicial process," Goldberg said.