Picture of Sodexo SA logo

SW — Sodexo SA News Story

0.000.00%
fr flag iconLast trade - 00:00
Consumer CyclicalsBalancedLarge CapSuper Stock

Brazil judge suspends meal voucher changes for Pluxee (updated)

Recasts with details, context

BRASILIA/SAO PAULO, Jan 27 (Reuters) - A Brazilian judge has granted an injunction to Pluxee PLX.PA suspending oversight actions or penalties related to new government rules changing the country's meal voucher system, a court ruling dated Monday showed.

The
new regulations
 would cap the fees that merchants pay voucher providers, as part of a broader government effort to modernize the so-called Worker Food Program (PAT).

The ruling suspends the enforcement of the new obligations and the possibility of applying sanctions based on non-compliance.

Pluxee welcomed the court's ruling in a statement on Tuesday, saying this would avoid "immediate impacts that could disrupt the food and meal benefits ecosystem."

It was the third firm to get an injunction over the new PAT rules after Edenred-owned EDEN.PA Ticket and Brazilian company VR received similar rulings last week.

CONTEXT

Ticket, Pluxee, VR and local firm Alelo control about 85% of the market, which moves 170 billion reais ($32.58 billion) per year.

Pluxee
had said
 earlier this month that the new rules would cut its expected Brazil revenue by half until 2027.

($1 = 5.2185 reais)

 (Reporting by Ricardo Brito and Fernando Cardoso; Editing by Brendan O'Boyle and Sarah Morland)

 ((fernando.cardoso@thomsonreuters.com;))

Recent news on Sodexo SA

See all news