By Maria Armental 
 

Brazilian oil company Petroleo Brasileiro SA said French utility company Engie SA and Canadian pension giant Caisse de depot et placement du Quebec presented the best offer for a 90% stake in gas-pipeline unit Transportadora Associada de Gas SA.

The roughly $8.6 billion offer, subject to approval by Petrobras governance and competitive defense bodies, includes the payment by the buyer of $800 million in debt with Brazilian state lender BNDES on the closing date, according to Petrobras.

State-owned Petrobras launched TAG's auction in 2017, attracting interest from Blackstone Group LP, EIG Global Energy Partners and Macquarie Group Ltd., all working with large institutional investors. (www.wsj.com/articles/competition-heats-up-for-brazilian-pipeline-business-1520445600)

Petrobras said it would continue to use TAG's natural-gas transportation services through several long-term contracts with the unit.

 

-- Luis Garcia contributed to this article.

 

Write to Maria Armental at maria.armental@wsj.com

 

(END) Dow Jones Newswires

April 05, 2019 17:42 ET (21:42 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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