Sale of Petrobras' Lubnor Refinery to Grepar Taken to CADE Court Due to Anticompetitive Risks in the Market

Sale of Petrobras’ Lubnor Refinery to Grepar Taken to CADE Court Due to Anticompetitive Risks in the Market

Written by Ruth Rodrigues

Published on 10/01/2023 at 00:49

Updated on 02/02/2023 at 19:19

Fonte: O Povo Mais

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The Advisor Victor Oliveira Fernandes Identified Some Competition Risks in the Market That Need to Be Better Evaluated in the Sale of Petrobras’ Asset to Grepar. The Transaction for the Acquisition of the Lubnor Refinery Will Now Go Through the Cade Court.

The year did not start well for Petrobras’ divestment operations in the refining segment. For this Tuesday (01/10), it is expected that the sale of the Ceará refinery Lubnor will be brought before the Administrative Council for Economic Defense (Cade), after indications of potential anticompetitive risks in the national market. The transaction had already been approved, but Advisor Victor Oliveira Fernandes identified the need for further analyses to proceed with the process.

Cade Court Will Analyze the Transaction of Selling Petrobras’ Lubnor Refinery to Grepar and Possible Issues in the Brazilian Market

The General Superintendence (SG) had approved in December 2022 the sale of the Ceará refinery Lubnor from Petrobras to Grepar for a total value of US$ 34 million, marking a significant advancement in the state-owned company’s divestment process.

However, the scenario changed significantly at the beginning of the year, as Advisor Victor Oliveira Fernandes identified some anticompetitive risks in the market with the transaction.

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Thus, the Cade Court will have to reevaluate the entire process, so that both companies can take a direction regarding the transaction.

The Lubnor is a refinery focused on asphalt refining and currently has a processing capacity of 8,000 barrels/day, being an important asset in the oil and gas sector of the state of Ceará.

Grepar operates in the asphalt distribution segment through Greca Distribuidora, causing a conflict with other companies in the sector, which believe that the transaction could lead to problems in the market.

The SG/Cade understood that the acquisition “results in vertical integration between asphalt production at Lubnor and asphalt distribution by Greca”.

Despite this, the agency’s superintendence argued that this is not a unique operation in the country, as Stratura, between 2007 and 2019, was controlled by Petrobras in a vertical business model.

However, the acquisition process of the refinery continues to be viewed as anticompetitive regarding the verticalization of operations.

Market Competitors in Asphalt Distribution Point Out to Cade Competitive Risks in the Sector If Grepar Successfully Acquires the Refinery

The main problem pointed out regarding the sale of Petrobras’ Lubnor refinery to Grepar is the verticalization of operations and the concentration of processes in the asphalt distribution segment.

Iconic Lubrificantes and Holding GV presented resources to the Cade advisor that point to the risks of the transaction in the segment, leading him to reanalyze the process.

Asfaltos Nordeste, from Holding GV, claims that the asphalt production deficit in the Northeast region is “compensated by refineries from other regions, disregarding the transportation costs involved”.

On the other hand, Iconic Lubrificantes warns about potential risks in the supply of naphthenic crude oil, as Grepar would not be able to continue production at the same levels as Petrobras at Lubnor, according to the company.

The sale of Lubnor to the private market is another operation anticipated in the agreement between Cade and Petrobras from 2019, which aimed at the privatization of some refineries in the sector.

However, with the new Lula Government, this initiative may lose its strength, thereby ensuring the maintenance of government control over the enterprises.

Sale of Petrobras’ Lubnor Refinery to Grepar Taken to CADE Court Due to Anticompetitive Risks in the Market

The Advisor Victor Oliveira Fernandes Identified Some Competition Risks in the Market That Need to Be Better Evaluated in the Sale of Petrobras’ Asset to Grepar. The Transaction for the Acquisition of the Lubnor Refinery Will Now Go Through the Cade Court.

Cade Court Will Analyze the Transaction of Selling Petrobras’ Lubnor Refinery to Grepar and Possible Issues in the Brazilian Market

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

Market Competitors in Asphalt Distribution Point Out to Cade Competitive Risks in the Sector If Grepar Successfully Acquires the Refinery

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Sale of Petrobras’ Lubnor Refinery to Grepar Taken to CADE Court Due to Anticompetitive Risks in the Market

The Advisor Victor Oliveira Fernandes Identified Some Competition Risks in the Market That Need to Be Better Evaluated in the Sale of Petrobras’ Asset to Grepar. The Transaction for the Acquisition of the Lubnor Refinery Will Now Go Through the Cade Court.

Cade Court Will Analyze the Transaction of Selling Petrobras’ Lubnor Refinery to Grepar and Possible Issues in the Brazilian Market

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At just 14 years old, a boy creates a system without energy, using steel pipes buried in the ground, that irrigates seedlings with moisture from the air, to combat the water scarcity threatening reforestation in northern China.

Where there was only sand and wind at 40 degrees, China built a megacity of 500,000 inhabitants with farms, wineries, and universities in the middle of the desert using melted glacier water from hundreds of kilometers away.

At over 8,800 meters above sea level, the summit of Mount Everest is made up of rocks that originated at the bottom of an ocean about 500 million years ago and were pushed to the highest point on Earth by the collision of tectonic plates.

The German economist Wolf-Peter Schill has no doubts: “Electric cars are already far superior to cars with internal combustion engines.”

Brazil accelerates decarbonization in the South: International forum in Foz do Iguaçu gathers leaders to discuss the advancement of biomethane in the energy matrix and the potential of “caipira pre-salt.”

Alert in the fuel market: Analysts and a former director of ANP warn that oil prices may worsen in the coming months due to global instability.

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