TAG suitor Engie expects to resume acquisition negotiations with Petrobras; eyes new buys
Engie Brasil [BVMF: EGIE3], the Brazilian unit of France-based energy company Engie [EPA: ENGI], expects to resume negotiations with Petrobras[BVMF: PETR4] to acquire TAG and is eyeing new buys this year, Valor Econômico reported.
Citing Engie Brasil CEO Eduardo Sattamini, the Portuguese-language item said the company is eyeing new acquisition opportunities in the electricity sector in 2019, including greenfield projects for new transmission lines or brownfield acquisitions, i.e. third-party transmission lines or electricity plants that are up for sale.
TAG owns a 4,500 kilometer gas pipeline network in Brazil’s North and Northeast regions, the item noted. Engie Brasil and holding company Engie do Brasil submitted the best bid in the TAG auction and were negotiating the acquisition with Petrobras when the deal was suspended by the Supreme Court.
If legal hindrances are settled, the remaining bidders will be informed of the conclusion of the contract negotiation process and will be allowed to submit new bids for TAG based on the new terms negotiated by Petrobras and Engie Brasil, the item said.
Petrobras is expected to receive between USD 8bn and USD 9bn for the target, the item stated.
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