Despite ANP Recommendations, CADE Approves Sale of Petrobras Oil Refinery to Atem Group for R$ 189.5 Million

Although ANP Recommended Remedies for the Sale of Petrobras’ Oil Refinery to the Atem Group, Cade Announced Approval of the Process and the State Company Can Proceed with the R$ 189.5 Million Deal with the Company

During the hearing on Thursday (05/12), Cade’s General Superintendence approved the sale of Petrobras’ oil refinery, Reman, located in Manaus, to the Atem group. The deal is estimated at R$ 189.5 million and the approval overlooked the recommendations of the National Petroleum Agency (ANP) regarding the application of remedies for the transaction.

Petrobras’ Oil Refinery Reman Will Proceed to the Sale Process to the Atem Company After Cade’s Approval

Cade’s General Superintendence surprised the oil and gas sector by approving the sale of the Reman oil refinery to the Atem company without any restrictions. Thus, the deal estimated at around R$ 189.5 million can move forward, and Petrobras should expedite the process over the coming months. This is critical for the company’s growth within the sector.

The agreement between Petrobras and the Atem group for the concession of the refinery was made back in August 2021, but only now has it received the necessary approval to proceed. Furthermore, this is the second refinery of the state company to be sold within the original package of eight units put up for sale by Petrobras in 2019. Among these, only the Landulpho Alves refinery (RLAM), now Mataripe Refinery in Bahia, was actually transferred to private control in a deal with Acelen. 

And, although ANP recommended remedies for Petrobras’ transaction with the Atem group, Cade ignored the suggestion and approved it without any restrictions. The superintendence stated that “it concluded that the operation does not create incentives for supply shortages and, therefore, no remedies will be linked to the approval,” and emphasized that “adopting any of the remedies proposed [by ANP] would violate the principle of proportionality” within the sale process. Thus, Cade asserted that this deal will generate competition, but remedies are not necessary for that to happen. 

ANP Suggested Remedies for the Sale of the State Company’s Oil Refinery to the Atem Group, Although Cade Ignored the Recommendations

During April 2021, ANP announced a suggestion for a series of remedies regarding the sale of Petrobras’ oil refinery. This aims to ensure access to the supply infrastructure of the Manaus Refinery and thereby mitigate concentration in the Northern region, which was suggested to Cade and Petrobras in the recommendations. 

Additionally, the sale of the oil refinery was heavily questioned by companies such as Raízen, Fogás, Equador, and Ipiranga, which were still involved in this process as interested parties. Among the accusations from the companies and ANP were shortages, abusive practices, discriminatory practices, and market closure. However, despite all these points raised, Petrobras and the Atem group guaranteed the safety of the transaction, and Cade accepted the companies’ deal. 

Now, Petrobras is awaiting the next steps within this bidding process, as there remains the possibility of some Cade counselor accepting appeals against the transaction or the sale process itself, but both companies are optimistic about the deal.