PARIS (April 8): A consortium led by French utility Engie has won a bid for Petrobras’ TAG pipeline arm with an US$8.6 billion offer, in a deal that boosts Engie’s presence in a fast-growing sector and will help Petrobras cut its debts.<\/p>\n
Engie said on Monday its successful offer for a 90% stake in TAG was made by a consortium involving Engie and Canada’s Caisse de D\u00e9p\u00f4t et Placement du Qu\u00e9bec (CDPQ). Petrobras will keep a 10% stake in TAG.<\/p>\n
Engie said buying TAG would provide it with a steady stream of profits, with TAG accounting for 47% of Brazil’s entire gas infrastructure.<\/p>\n
“Our acquisition of TAG is a significant milestone for ENGIE in Brazil, a key market for the group where we have been present for 23 years,” said Engie Chief Executive Isabelle Kocher.<\/p>\n
“It is fully aligned with Engie’s strategy to become the leader of the zero-carbon transition, supporting Brazil in the decarbonization of its energy mix,” added Kocher.<\/p>\n
Under Kocher, Engie has been focusing its investments on energy services, renewable energy and infrastructure assets, while selling out of coal-related assets.<\/p>\n
Engie said the acquisition of TAG, which had 2018 core earnings of US$1.14 billion, would result in Engie’s net debt increasing by around 1.6 billion euros (US$1.8 billion).<\/p>\n
The TAG divestment also represents a victory for Petrobras’ leadership and its Chief Executive Roberto Castello Branco, who is pushing to unload assets in a bid to cut debt and refocus on exploration and production.<\/p>\n
In September 2016, Petrobras sold a larger gas network pipeline, Nova Transportadora do Sudeste, for US$5.2 billion to Brookfield Infrastructure Partners LP, which beat out a bid by Engie.<\/p>\n","protected":false},"excerpt":{"rendered":"
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