June 18 – The Administrative Council for Economic Defense (CADE) approved, without restrictions, the acquisition of control of Brava Energia (BRAV3) by Ecopetrol, removing another regulatory step for the completion of the operation.
The decision comes a day after Brava announced that the public takeover bid (OPA) launched by the Colombian oil company was temporarily suspended. Ecopetrol contested technical requirements imposed by the Securities and Exchange Commission (CVM) and announced that it will appeal to the regulator’s board.
At the end of May, Ecopetrol had received regulatory authorization to launch the offer, which foresees the acquisition of 116.1 million Brava shares, equivalent to about 25% of the company’s share capital, at a price of R$ 23 per share.
CADE’s approval eliminates the competitive risk of the transaction, but the completion of the OPA still depends on the resolution of pending issues with the CVM.
Brazil Energy Insight 
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