Petrobras Signs Deal with Brazil Regulator for Sale of Refining Assets

Brazil’s state-controlled oil company Petroleo Brasileiro SA (Petrobras) said on Tuesday it has signed a deal with local antitrust regulator CADE regarding the proposed sale of some of its refining installations. According to a securities filing, the company said the agreement will allow for increased competition in Brazil’s refining sector, by attracting new players to the business.

Petrobras will sell eight refineries in seven different Brazilian states. Under the terms of the deal, some of the assets cannot be acquired by the same buyer, the company added in the filing. Petrobras will hire an external agent to make sure it follows the commitments made to CADE.

After the announcement, Petrobras shares added to early gains and were trading near session highs, with common stocks up 2.3% and preferred stocks rising 1.84%.

(Reporting by Gabriela Mello; Editing by David Gregorio)