A Brazilian federal court suspended on Friday the US$5.2 billion sale of state-controlled Petróleo Brasileiro SA‘s natural gas pipeline unit to a group of investors led by Canada’s Brookfield Asset Management.
In a document seen by Reuters, the Sergipe state-based court ruled the transaction, which was to be closed within weeks, be halted because of discrepancies in the way Petrobras proceeded with the sale.
Petrobras said later on Friday that it had been informed about the court’s decision and that it planned to take “appopriate judicial measures” regarding the case, indicating it would appeal.
The sale of the natural gas transportation system, called Nova Transportadora do Sudeste (NTS), was the main item of Petrobras’ 2015-2016 divestiture program.
Update: Brookfield Infrastructure Partners announced its plan to acquire a 90 percent stake in NTS in September.
(Reporting by Marta Nogueira and Marcelo Teixeira; Writing by Guillermo Parra-Bernal; Editing by David Gregorio and Bill Rigby)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Reuters