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