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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

07/30/2013

 

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