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Petrobras & Cade Sign Termination Agreement For Refining Market In Brazil

Gasoil News - Published on Mon, 17 Jun 2019

Image Source: Petrobras
Petrobras signed a termination agreement with the Administrative Council for Economic Defense, which consolidates the understanding between the parties on the execution of divestment in refining assets in Brazil. The purpose of this term is to provide competitive conditions, encouraging the entry of new economic agents in the refining market, and to suspend the administrative investigation instituted by the Court of Cade to investigate alleged abuse of Petrobras' dominant position in the refining segment. With the conclusion of this term, Petrobras undertakes to sell in full the refining assets disclosed in a press release, based on a schedule agreed upon by the parties, pursuant to the Company's Disinvestment System. The economic-financial assessments relating to each of the assets, as well as the technical, legal, financial and compliance requirements of the potential buyers, must be complied with.

Mr Roberto Castello Branco, president of Petrobras, after approval of the agreement at the company's headquarters, said that "Monopoly power is not justified in a free and democratic society, because it is a restriction on people's freedom of choice and generates several distortions contrary to economic growth. Where is it. I hope that, concretizing this initiative, we will make an important contribution to productivity growth, to attract new investments and to give a contribution to the Brazilian economy's return to the path of prosperity."

Potentially competing assets

The agreement provides that the following assets considered as potential competitors may not be acquired by the same buyer or companies of the same economic group: (i) Landulpho Alves Refinery and Abreu e Lima Refinery; (ii) Refinery Presidente Getúlio Vargas and Alberto Pasqualini Refinery (iii) Gabriel Passos Refinery and Landulpho Alves Refinery.

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Posted By : Sanju Moirangthem on Mon, 17 Jun 2019
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