Engie Reaffirms Its Interest in TAG After STF Injunction

Engie Maintains Interest in TAG After STF Restraining Order, The Company Led the Purchase of TAG from Petrobras for US$ 8.6 Billion.

In a restraining order granted last Friday, May 24, after a request from unions, Edson Fachin, a minister of the Supreme Federal Court (STF), overturned a decision made last January by the Superior Court of Justice (STJ) that had revoked a restraining order against the sale of TAG’s pipeline unit by Petrobras.

Engie led the purchase of TAG from Petrobras for US$ 8.6 billion, in a deal announced last month. Fachin’s decision responded to a request from oil worker unions.

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“It’s a pity, as it creates unnecessary uncertainty; everyone knows that the process was extremely competitive with approval and oversight from the TCU (Court of Auditors of the Union)”, said a company source, speaking on condition of anonymity.

Engie Keeping an Eye on Petrobras Employees at TAG

Despite Minister Edson Fachin’s decision to suspend the sale of TAG to the consortium led by Engie, the French company continues its schedule of meetings with Petrobras employees working at TAG, at the company’s headquarters in Rio de Janeiro.

The idea is to propose to a good portion of them (the majority being civil servants) to resign from Petrobras so they can be hired by Engie.

STF to Decide on Thursday Whether Privatization of State-Owned Companies Requires Congressional Approval

Toffoli included in Thursday’s plenary agenda the judgment of a case that discusses whether privatizations of state-owned companies require prior approval from the National Congress or to go through a bidding process.

Toffoli decided on Monday night to bring the issue before the STF plenary on Thursday, according to the Supreme’s system.

The court’s plenary should also review the same day a restraining order granted by Minister Edson Fachin, which suspended Petrobras’s sale of 90% of TAG to a group led by the French utility Engie for US$ 8.6 billion. This decision by Fachin was made public this Monday.

The Supreme ministers are expected to confirm or reject the restraining orders granted by Lewandowski and Fachin.

In both cases, the discussion is expected to revolve around whether it is necessary to carry out a bidding procedure and obtain prior legislative authorization for the transfer of share control of state-owned companies, as is the case with Petrobras subsidiaries.

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