The Financial Post reports in its Saturday edition that Petroleo Brasileiro SA's $5.2-billion (U.S.) sale of a natural gas distribution unit to Brookfield Asset Management and other investors has hit a legal snag. A Bloomberg dispatch to the Post says that a Brazilian federal judge granted an injunction against the acquisition of Nova Transportadora do Sudesteon Friday on grounds that the sale was not sufficiently publicized to foster competition. Petrobras is taking the necessary legal steps to protect its interests and those of its shareholders, the oil producer said in a statement.
Petrobras's plan to restore financial health through a massive divestment program has been facing legal challenges since late 2016 when Brazil's audit court, known as TCU, suspended all asset sales not in the final stages of negotiations. A separate regional court has temporarily suspended some divestments including the sale of two offshore fields to Karoon Gas Australia.
"They might have to come up with a different strategy and make it more transparent, which is what the courts are demanding," said Horacio Cuenca, a Rio de Janeiro-based analyst at Wood Mackenzie. "In one way or another, I'm sure the company will go ahead."
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