Brasília, March 1, 2004 (Agência Brasil - ABr) - The Nestle Corporation maintains its plans to invest in Brazil, despite the decision by the Administrative Council for Economic Defense (Cade) barring its take-over of the Garoto company. "Our 80-year relationship with Brazil will not change," affirmed Nestle president, Peter Brabeck-Letmathe, in Vevey, Switzerland.

Nestle vice-president for the Americas, Carlos Represas, said that Nestle was "surprised by the Cade's drastic and tough decision."

Two years ago, Nestle bought the Garoto Chocolates company for around US$ 250 million. Garoto is the third largest supplier of chocolates in Brazil, with about 24%¨of the market. Nestle has 29%. The Cade ruled that the acquition of Garoto would give Nestle a very powerful market position, which would harm consumers.

According to the decision, Nestle has to sell Garoto to a competitor that has no more than a 20% market share. (DAS)