Chevron Receives Approval From Cade for Acquisition of German Oil and Gas Company Wintershall Dea

After confirming that the purchase of the oil and natural gas company Wintershall Dea would not interfere with the competitiveness of the sector in Brazil, Cade granted Chevron the approval to proceed with the process, which is expected to be completed soon.

On Monday (06/20), the Superintendence of the Administrative Council for Economic Defense (Cade) granted Chevron the necessary approval for the acquisition of the oil company Wintershall Dea. The approval was granted after the council examined the impacts of the acquisition on the Brazilian oil and natural gas sector and found that competitiveness among companies in the industry would not be affected by the purchase.

Cade Grants Chevron the Necessary Approval to Proceed with the Acquisition of the Oil Company Wintershall Dea

The oil and gas company Chevron continues to seek to expand its business portfolio in the global market, with its current focus on the fuel production chain in Brazilian territory, due to the high potential that the country possesses. Thus, the company was looking to acquire the European oil and natural gas company Wintershall Dea to expand its presence in the national market but still needed to wait for the approval of the process to move forward. 

Now, the Superintendence of Cade has finally granted the company the necessary approval to proceed with the acquisition of Wintershall Dea, thus enabling it to manage the company’s oil and natural gas business in Brazil.

While Chevron operates in Brazil in the crude oil and gas sector, in the stages of exploration, production, and refining, Wintershall Dea is one of the leading independent natural gas and oil companies in Europe, with over 120 years of experience as an operator and project partner in this sector across 13 different countries.

As such, Chevron will now hold Wintershall Dea’s business portfolio in the national territory. This will contribute to its growth in the oil and gas sector, since the European company holds a license in the Ceará Basin and three in the Potiguar Basin, both on the northern coast of the country.

In addition to interests in five fields in the Campos and Santos Basins, on the southeastern coast. With all these businesses, the production and exploration of fuels by the oil company will reach new levels in the coming years.

Acquisition of Wintershall Dea by the Multinational Will Not Interfere with Brazilian Competitiveness in the Oil and Gas Sector, Says Cade’s Superintendency

The main reason that led to Cade’s approval of the acquisition was the low influence that this transaction will have on national competitiveness in the oil and gas sector.

This is because the council’s superintendence found that Chevron will hold less than 10% of the marketing sector in oil and natural gas in the country, so it should not hinder the competitiveness of other companies in the Brazilian oil and natural gas sector. 

In addition to approving Chevron’s acquisition of Wintershall Dea, Cade also approved the acquisition of a stake in the Wintershall group, one of the leading natural gas and oil companies in Europe, by the Spanish oil company Repsol Exploração Brasil (REB). This company operates throughout the oil and gas production chain in both the European and national markets. Thus, Chevron Brasil will receive the rights and obligations of 50% of the participation in the 20% shares currently held by Wintershall in the country. 

This way, not only will Chevron be able to take new directions in the national oil and natural gas market, but Cade’s decision also ensures Brazil a new round of investments in infrastructure and exploration of these resources over the coming years.