Cade Sets Date for Court Session on Sale of Petrobras’ Reman Refinery to Atem Group

After a Series of Criticisms Regarding the Concentration of the Fuel Market in Northern Brazil, the Cade Will Meet for a Hearing on the Sale of Petrobras’ Reman Refinery to the Atem Group.

The Cade (Administrative Council for Economic Defense), an agency linked to the Ministry of Economy, will hold a hearing this coming Wednesday, (08/03), to address the sale of the Reman Refinery (Isaac Sabbá Refinery of Manaus), owned by Petrobras, to the Atem group. The process has been criticized by companies and representatives of the oil and gas sector across Brazil, who point to risks of market concentration in the northern part of the country, but it will still undergo judgment.

Sale Process of Petrobras’ Reman Refinery to the Atem Group Will Undergo a Hearing at Cade Following Criticisms Regarding the Consequences of the Transaction 

Amid the controversies of the national oil and natural gas scenario, Cade will hold a meeting next Wednesday for the judgment of the sale of the Reman Refinery to the Atem group, part of Petrobras’ divestment plan in Brazilian territory.

The transaction process is currently facing criticism from companies such as Ipiranga, Equador, and Raízen, which were part of the negotiations for the refinery’s acquisition. 

In addition, the rapporteur, and counselor Lenisa Rodrigues Prado made a request to the Cade Court for a new analysis of the sale process of Petrobras’ refinery, as she believes that this acquisition could result in market concentration in the northern region of the country.

The rapporteur also stated that the northern region of the country has structural limitations for fuel production and the sale of Reman could lead to an individual monopoly in the hands of the Atem group. 

She concluded by stating: “Despite the Applicants [Atem] claiming that it is a lack of investment from competitors and clients, the specificities of the northern region — logistical difficulties, infrastructure, especially considering the nature and other regulatory aspects — do not make the expansion of ports and terminals simple or low-investment factors.” This is because companies dependent on Petrobras’ Reman refinery, such as Ipiranga, Equador, and Raízen, have publicly expressed their concerns about the imposition of abusive prices if the sale is finalized. The process had already been postponed by the rapporteur for three months last year, but now it is being accelerated again. 

Sale of Reman Refinery to the Atem Group Has Been Facing Resistance Since Its Announcement, but Cade’s Judgment May Accelerate the Process 

The sale of the Reman Refinery by Petrobras began in 2021, for the amount of US$ 189.5 million (equivalent to R$ 994.15 million) to the Atem Group, and was expected to be finalized in March of this year.

However, the process has faced resistance from rapporteur Prado and the oil and gas companies, which claim a series of negative consequences for the northern market with the completion of the sale.

Thus, in March of this year, Cade requested more information from Petrobras and the Atem group regarding the sale of Reman, as the claims of the companies dependent on the refinery were disrupting the continuity of the process. However, two months after declaring the operation complex, the general superintendent of Cade, Alexandre de Souza, approved the sale of the refinery without restrictions on May 12.

Now, Petrobras, the Atem group, the rapporteur of the process, and oil and gas companies are awaiting the hearing session for the transaction’s structure, which should have its outcome announced to the press this coming Wednesday.