Brazil’s antitrust watchdog CADE said on Friday that the sale of state-run oil company Petrobras’ Reman refinery to fuel distributor Atem was approved with no restrictions.
Reuters had reported the regulator’s approval of the deal on Thursday, citing sources.
Petroleo Brasileiro SA, as the company is formally known, had announced in August 2021 an agreement to sell the refinery, which is located in the northern state of Amazonas, for $189.5 million.
The sale still needed to be approved by CADE. Reman is one of eight refineries the company has put up for sale as part of a 2019 agreement with the antitrust regulator to enhance competition in Brazil’s oil refining sector.
CADE said in a statement that the approval came as its general superintendence considered that Atem would not be able to absorb all of Reman’s gasoline and diesel output on its own, adding that the company will also look to expand the plant’s production.
“No incentive was found for Atem to close distribution to competitors, given that there is a high investment in the refinery that will need to be recovered and other alternatives for distributors to source their products,” CADE said.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
