Engie Brasil Energia informed Brazil’s Supreme Court that it had already raised US$3 billion abroad to buy Petroleo Brasileiro’s—known as Petrobras—TAG pipeline unit when the top court suspended the US$8.6 billion acquisition last week, according to Reuters.
A consortium led by the subsidiary of French gas and power group Engie had already closed the purchase of Transportadora Associada de Gás, or TAG, from state-run oil company Petrobras in April and received approval from Brazil’s antitrust regulator for the deal.
Engie told the court its decision had “created a situation of extreme juridical insecurity” because it had already begun an operation involving “significantly” costly financial resources to buy a 90% stake in TAG.
Supreme Court judge Edson Fachin issued an injunction on Friday, May 24, suspending some major divestments by Petrobras at the request of an oil workers union. The full court will debate the injunction on Thursday, May 31.
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