Engie-CDPQ buy Petrobras’ gas pipeline business

Brazil’s state-controlled Petrobras said that France’s Engie, together with the Canadian investment fund Caisse de Depot and Placement du Quebec (CDPQ), have put in a R$ 35.1 billion offer for Transportadora Associada de Gás.

After adjustments, the transaction, when completed, will represent to Petrobras a total estimated value of $8.6 billion, Petrobras said in a statement.

This amount includes the payment by the buyer of TAG debts before BNDES ($800 million) on the transaction closing date.

Petrobras will continue to use TAG’s natural gas transportation services through the long-term contracts already in force between the two companies, without any impact on its operations and the delivery of gas to distributors and other customers.

The company noted that the transaction is still subject to approval by Petrobras governance and competitive defense bodies.

The subsequent phases will be disclosed to the market in accordance with the company’s Disinvestment Methodology.