A consortium led by French utility Engie has won a bid for TAG, the pipeline unit of Brazil’s Petrobras, with an offer of USD 8.6 billion, boosting Engie’s presence on a fast-growing sector and helping Petrobras cut its debts, according to Reuters.
Engie’s offer for a 90 percent stake in TAG was made through a consortium that includes Engie and Canada’s Caisse de Dépôt et Placement du Québec (CDPQ).
TAG accounts for 47 percent of Brazil’s gas infrastructure. Petrobras has been trying to unload assets in order to cut debt and refocus on exploration and production.
“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. “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,” she added.
Engie has been focusing its investments on energy services, renewable energy and infrastructure assets, while selling out of coal-related assets.