Start Even after ANP recommendations, Cade approves sale of Petrobras oil refinery to Atem group in the amount of R$ 189.5 million

Even after ANP recommendations, Cade approves sale of Petrobras oil refinery to Atem group in the amount of R$ 189.5 million

May 13, 2022 3:04 pm to 3:04 pm
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Although the ANP has recommended the application of remedies on the sale of the Petrobras oil refinery to the Atem group, Cade announced the approval of the process and the state-owned company will be able to continue the deal of R$ 189.5 million with the company
Photo: André Motta de Souza/Petrobras Agency

Although the ANP has recommended the application of remedies on the sale of the Petrobras oil refinery to the Atem group, Cade announced the approval of the process and the state-owned company will be able to continue the deal of R$ 189.5 million with the company

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

Oil refinery Reman, from Petrobras, will proceed to the sale process to the company Atem after approval of the deal by Cade

The General Superintendence of Where 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 will be able to move forward and Petrobras should continue the process at a faster pace during the coming months. This happens because this is an essential transaction for the growth of the state-owned company within the segment. 

The agreement between Petrobras and the Atem group for the concession of the refinery was carried out during the year 2021, in the month of August, but only now has it obtained the necessary approval for continuity. In addition, this is the second state-owned refinery 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), today the Mataripe Refinery, in Bahia , was de facto transferred to private control, in a deal with Acelen. 

And, although the ANP recommended the application of remedies on the 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 generate incentives for the closure of inputs and, therefore, remedies will not be linked to approval”, in addition to emphasizing that “adopting any of the remedies proposed [by the ANP] would violate the principle of proportionality” within the sales process. Thus, Cade stated that it understands that this deal will generate competitiveness, but that there is no need for remedies for this to happen. 

ANP had suggested applying remedies on the sale of the state-owned oil refinery to the Atem group, although Cade ignored recommendations

During the month of April 2021, the ANP had announced the suggestion of a series of drug applications on the sale of the Petrobras oil refinery. This happens because the agency's main objective is to guarantee access to the supply infrastructure of the Manaus Refinery and, thus, to remedy the concentration in the North region, which was suggested to Cade and Petrobras within the recommendations. 

In addition, the sale of the oil refinery was questioned by companies such as Raízen, Fogás, Ecuador and Ipiranga, which were still involved in this process as interested parties. And, among the accusations of the companies and the ANP, there are shortages, abusive practices, discriminatory practices and market closure. But, despite all these points mentioned, Petrobras and the Atem group ensured security in the transaction and Cade accepted the companies' deal. 

Now, what Petrobras is waiting for are the next steps within this bidding process, since there is still the possibility that a Cade advisor may appeal against the transaction or the sale process itself, but both companies are optimistic about the deal.

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