ENGIE and CDPQ make the winning bid to acquire TAG

ENGIE has announced that together with Caisse de dépôt et placement du Québec (CDPQ), it has made the winning bid in a competitive process conducted by Petrobras for the acquisition of a 90% shareholding stake in Transportadora Associada de Gás S.A. (TAG) with a final and binding offer amounting to US$8.6 billion.

ENGIE will have a stake of 58.5% in the asset (of which 29.25% through ENGIE Brasil Energia) and CDPQ will have a stake of 31.5%, while Petrobras will maintain a 10% stake in TAG’s capital. In addition to its ownership, ENGIE will be responsible for the operation and maintenance after the third year.

The transaction is conditional to the approval of the Extraordinary General Meeting of Petrobras and the Conselho Administrativo de Defesa Econômica (CADE) (the Brazilian anti-trust authority) and the European Union anti-trust authority.

TAG is the largest natural gas transportation network owner in Brazil with approximately 4,500 km of gas pipeline infrastructure located along the coast of the Northeast and Southeast regions in addition to a stretch linking Urucu to the city of Manaus (AM). The network also has 12 gas compression stations (6 proprietary and 6 subcontracted) and 91 delivery points.