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Blackstone and partner offer to buy US$6 billion pipeline

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World Pipelines,


Blackstone and Patria Investimentos Ltda are one of at least three groups that have made non-binding offers up to US$6 billion to acquire the asset.

Mubadala Development and EIG Global Energy Partners also made an initial offer for the 90% stake in Transportadora Associada de Gas SA, as well as a consortium led by French Energy company Engie SA, according to reports.

Banco Santander SA is advising Rio de Janeiro-based Petrobras on the deal and it should close before the end of the first half of 2018.

Petrobras Chief Executive Officer Pedro Parente has set an aggressive agenda to solidify the state-controlled company’s finances after the twin challenges of the oil rout and a corruption scandal dealt it a near-death experience. He is rushing to finish his work before an unpredictable presidential campaign next year makes it harder to sell assets.

The economy of Brazil has been struggling, weighed down by the collapse in oil prices and a corruption scandal that saw the former CEO of state oil company Petrobras formally indicted in August. Brazil’s government is striking back by opening up its energy and mining industries to foreign investment. Brazil’s legislators put forward a list of 57 major state infrastructure assets that will be put up for privatisation, giving investors access to these strategic sectors for the first time in decades.

Read the article online at: https://www.worldpipelines.com/business-news/04122017/blackstone-and-partner-offer-to-buy-us6-billion-pipeline/


 

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