CADE Authorizes Compass to Compete Again for Petrobras’ Gaspetro Acquisition

Petrobras Allows Compass to Compete Again for the Purchase of Gaspetro, Following a Statement from the Administrative Council for Economic Defense (Cade)

Petrobras announced in a relevant fact last Wednesday (30/12) that after a statement from the Administrative Council for Economic Defense (Cade), it opted to continue Compass, a company of the Cosan Group, in the process of selling 51% of its subsidiary Gaspetro. Petrobras Ends Partnership with Sete Brasil for Only 7 Euros

Also Read

• Abreu e Lima Refinery of Petrobras, RNEST Produces First Tank of Gasoline and Will Supply Distributors in Pernambuco, Pará, and Ceará
• 230 Professionals Called This Afternoon (30/12) for Offshore and Onshore Job Openings; Start on March 3, 2021
• Oil Multinational MODEC Will Start 2021 with Many Offshore and Onshore Job Openings for Macaé, Rio de Janeiro, and São Paulo
• Macaé Closes the Year with Offshore and Onshore Job Openings for Technical and Higher Levels

Petrobras’ subsidiary, Gaspetro, operates in the natural gas distribution market. According to the state-owned company, it received a letter from Cade informing that its continuation in the competition does not constitute a breach of the Term of Commitment to Cease (TCC).

“If the contract for the purchase and sale of shares is signed, the operation will be subject to Cade’s review at the time of the analysis of the Concentration Act regarding possible impacts on competition defense,” the statement to the press released by Petrobras said.

Currently, the sale of 51% of Gaspetro is in the binding phase. Compass quoted the purchase at around US$ 1 billion. In addition to this, the state-owned company received two more proposals, one from Sobek Energia and another from GP Investimentos Group.

Mitsui Gás e Energia do Brasil holds the remaining stake (49%).

Recalling the Case

Claiming non-compliance with the TCC requirements, at the end of November, Petrobras disqualified Compass, a company of the Cosan Group, the largest distributor in the country that holds one of the state concessions in São Paulo.

Gaspetro has a shareholding in several natural gas distribution companies located throughout Brazil. Last year, the total volume of gas distributed by the company was 29 million cubic meters per day.

Pre-Salt Pipelines Will Be Connected to Baixada Santista by Compass Gás e Energia

Billions in investment in São Paulo through the pre-salt. Company of the Cosan Group, Compass Gás e Energia, will invest with strategic partners, US$ 2 billion (R$ 11.15 billion) in pipelines in the Santos Basin through Rota 4 Participações.

The Rota 4 project is in the licensing phase, and the expectation is that the pipeline will start operating between 2027 and 2028. It will take approximately four years to build the structures.