CDPQ and Engie Increase Stakes in Brazil’s Natural Gas Pipelines

Summary

  • Upon the completion of the deal, CDPQ will enhance its shareholding in TAG to 50%.
  • Engie Brasil will possess 17.5% while the rest would be held by its French parent company, leading to an indirect 50% stake.
  • In 2019 $8.6 billion acquisition, Engie and CDPQ had taken over 90% of TAG from Petrobras, a state-run oil corporation.
  • Being a major part of Brazil’s natural gas grid, TAG owns and operates approximately 4,500 kilometers (2,800 miles) spread across 10 Brazilian states.
  • ($1 = 4.8501 reais)

CDPQ Increases Stake in TAG

A deal has paved the way for CDPQ to increase its shareholding in TAG to 50%. Simultaneously, Engie Brasil would own 17.5%, and the remainder would be held by the French parent company, resulting in an indirect stake of 50%.

2019 Acquisition History

Two years back in 2019, Engie and CDPQ jointly acquired state-run Petrobras’s 90% stake in TAG at approximately $8.6 billion. The partners procured the remaining stake in the following year.

TAG’s Significant Presence

TAG holds a significant position in Brazil’s natural gas infrastructure. Occupying over 10 states in Brazil, TAG’s pipelines extend nearly 4,500 kilometers (2,800 miles).

($1 = 4.8501 reais)

This financial news is anticipated to affect dynamics in the forex and trading realm, primarily impacting stakeholders of Engie, CDPQ, and TAG.

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