Brazil Supreme Court Facilitates Sale of Subsidiaries by State-Owned Companies

The decisions will allow Petrobras to proceed with its plan to divest US$27 billion of non-core assets by 2023, which it has repeatedly said is key to reducing its bloated debt load.

By Newsfeed/Reuters

RIO DE JANEIRO, BRAZIL - Brazil's Supreme Court (STF) ruled, by an 8 - 3 vote on Thursday, June 6th, that state-owned firms do not need congressional approval to sell their subsidiaries, a major victory for the government of President Jair Bolsonaro and state-run oil giant Petrobras.

Also on Thursday, STF Justice Edson Fachin, who last month had ordered suspension of the US$8.6 (R$34) billion sale of Petrobras' TAG pipeline unit to France's Engie SA, reversed his decision in light of the full court's ruling, allowing Petroleo Brasileiro SA, as the . . .

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