Vouga Abogados Advises Copetrol in the Largest Acquisition in the History of Paraguay
July, 2018 - Paraguay
The Corporación Paraguaya Distribuidora de Derivados de Petróleo S.A. (Copetrol) -through a subsidiary of the Copetrol group-, and Petróleo Brasileiro S.A. - through its subsidiary Petrobras International Braspetro BV (Petrobras) -, signed on June 27, 2018 a contract for the transfer of Petrobras's stake in the companies named Petrobras Paraguay, which operate the distribution business of fuels, lubricants and LPG in Paraguay, in an transaction estimated at USD 383,000,000 and that, because of its value and importance, constitutes a true milestone in business at local level.
The agreement was signed after a rigorous competitive process in which Petrobras selected Copetrol among 10 other competitors.
During the negotiation process, Copetrol received the constant advise of the Vouga Abogados team, which covered all aspects of the transaction including the due diligence, the SPA review and, in particular, the leadership of the negotiations with the team of mergers and acquisitions of Petrobras and its legal counsel. The closing of the transaction is subject to the approval of the National Competition Commission (CONACOM), the Paraguayan antitrust agency.
According to the agreements, the operations of the acquired entities will be managed by an independent company of Copetrol.
Copetrol has indicated that it will seek to reinvest in Paraguay the results of the operations of the acquired companies, in order to generate jobs and boost growth, both for the company and the country.
