State-run oil firm Petrobras will proceed with its assets sale program after the Brazilian supreme court decided on Thursday night it does not need legislators’ approval to sell subsidiaries, the firm said in a statement.
The company was awaiting the decision to conclude the sale of a 90% stake in TAG for US$8.6bn to French energy company Engie and Canada's Caisse de Dépôt et Placement du Québec. Under a divestment plan, Petrobras is aiming to raise US$26.9bn from asset sales by 2023.
While the supreme court decision affirms that privatizing subsidiaries of state-run firms does not require legislators’ approval, lawmakers need to approve the privatization of state companies.
Nonetheless, energy minister Bento Albuquerque celebrated the outcome, saying it will help to open the gas and fuels market for private investors.
“This brings predictability and legal certainty to the market,” Albuquerque said in a statement.