English 
Spanish 
3 min read
0 comments
Brazilian state-owned company considers reacquisition of refinery sold to Mubadala in 2021
State-owned Petrobras (PETR4) is in advanced negotiations to repurchase the Mataripe Refinery (formerly RLAM), which it had been sold to the Mubadala fund in 2021 for US$1,8 billion. According to information from Estadão, the state-owned company and Mubadala are about to sign a binding agreement, which reignites concerns about possible government intervention in Petrobras, according to the Infomoney website.
Details of the state-owned company’s negotiation
Petrobras already completed due diligence and may make a binding offer by September, with the transaction expected to close in 2025, pending approval by the company's board of directors. This movement is viewed with caution by the market, especially by Goldman Sachs, which warns of the risk of government intervention, given that the current federal government previously criticized the sale of Petrobras assets.
Petrobras' current strategic plan includes additional capex of up to US$11 billion for mergers, acquisitions and other investments between 2024 and 2028. However, this budget may limit extraordinary dividends in the short term.
- Energy revolution: Abreu e Lima Refinery leads the energy transition with sustainable fuels and green energy
- Energy on the Rise: Eneva Achieves Record Results in the Third Quarter
- Goodbye coal, hello future! Pecém Thermoelectric Plant announces billion-dollar transition and promises to become a national reference in sustainable energy
- Petrobras says 'no', denies agreement and proposes review of sale of refineries to Cade amid changes in the market!
Market value and regulatory challenges
According to Bradesco BBI, the current value of the state-owned Mataripe Refinery varies between US$ 1,6 billion and US$ 2,8 billion, without considering investments in the biodiesel project. The main question is whether Petrobras will be able to acquire controlling interest in the refinery, especially after the recent amendment to the agreement with the Administrative Council for Economic Defense (Cade). This amendment exempts Petrobras from selling some refineries, but maintains the obligation to disinvest in others, including RLAM.
Market impact and dividend prospects
BTG Pactual considers this movement negative, as state-owned Petrobras has obtained lower returns in the refining segment compared to its core exploration and production (E&P) business. Although some analysts argue Although there are obstacles that prevent Petrobras from increasing investments in E&P, BTG believes that the best strategy would be to return greater dividends to shareholders.
However, BTG does not foresee a significant reduction in dividend payments in the short term, as the negotiation has not yet been confirmed and, if it is, it could involve the acquisition of a smaller stake in the refinery. The bank estimates that the transaction would only be completed in 2025, considering the necessary governance procedures. Furthermore, BTG's model already includes around US$2 billion for mergers and acquisitions over the next 12 months, which means the Mataripe buyback is broadly priced.
Adjusting sales price for US inflation (12%), the current cost of the refinery would be close to US$2 billion, or US$2,1 billion by including an estimate of US$300 million for investments made by Mubadala to improve the asset.
Be the first to react!