Galp has approval to buy a stake in Petrobras Biocombustível

GALP will buy 50% of Petrobras in Belem Bioenergia Brasil and will become the company's sole shareholder, according to Cade's opinion.

On this day, September 02nd, the Portuguese energy group Galp was authorized by the Brazilian antitrust body, Cade, to acquire a stake in Petrobras in Belem Bioenergia Brasil, a biofuels company in which it already had a stake. Amidst the divestments made by the oil company to focus on the pre-salt layer, the president has no intention of privatizing the company.

The transaction was approved without restrictions by the Administrative Council for the Defense of Competition (Cade), according to publication in the Federal Official Gazette.

SPORTS AND FITNESS – FREE MARKET

Through the transaction, Galp will buy 50% of Petrobras in Belem Bioenergia Brasil and will become the company's sole shareholder, according to Cade's opinion, which does not cite amounts involved.

“From the perspective of galp, the operation represents an opportunity to expand its operations in the palm oil market and increase the production and distribution of the product in the domestic market. From Petrobras' perspective, the operation represents an opportunity to dedicate its commercial efforts to its core activities and optimize its business portfolio”, informed Cade.

The antitrust body's opinion also defended that the deal will have "positive implications for the market from a competitive perspective", by reducing Petrobras' concentration in the segment.

Petrobras has made several divestments to reduce its debt and at the same time focus its efforts on oil and gas exploration and production in deep waters.

On August 26, the company began the binding phase for the sale of all of its stakes in the onshore field concessions at Polo Rio Ventura, in Bahia. In all, the state-owned company will sell its shares in 8 exploration and production concessions.

Those qualified for the new phase of the divestment process will receive instructions, including how to present their proposals for the asset.

Privatization of Eletrobras generates an expectation of R$ 16,2 billion for the Government