Brazil antitrust agency to decide if OGX and Petrobras violated law
BY LUCIANA MAGALHAES
SAO PAULO -- Brazil' s antitrust agency Cade will decide in 30 days if OGX, controlled by entrepreneur Eike Batista, and Petrobras, violated the antitrust law in a deal announced in November 2012, the agency said.
At the time, Petrobras said it agreed to sell its 40% stake in the BS-4 oil block to OGX for $270 million. The block contains two oil fields and is located 185 km off the Brazilian coast.
Cade' s press office said in an email that the agency will investigate to see if the deal has been concluded in violation of Brazil' s antitrust law.
If the agency decides that there has been what they call "gun-jumping," or having finalized the deal without Cade' s approval, the companies may be subject to fines of between $27,000 to $2.6 million, according to Cade.
In a statement, OGX said that there was no violation because the deal hasn' t been concluded as it still subject to the approval of the National Petroleum Agency. Spokespeople for Petrobras were not immediately available.
Dow Jones Newswires