Brazil’s market regulator suspends Colombia’s Ecopetrol bid to take control of Brazilian oil producer Brava Energia, according to reports citing the regulator’s action. The suspension follows an order requiring changes to the terms of Ecopetrol’s offer. Ecopetrol has appealed the regulator’s ruling.
The proposed transaction involves Ecopetrol, the state-controlled Colombian oil company, seeking majority control of Brava. The deal was agreed in April, when Ecopetrol moved to acquire a stake in Brava and later set out plans to reach controlling influence by targeting 51% of Brava’s voting shares. The bid is structured as a tender offer in Brazil’s stock market, with Ecopetrol offering about $4.50 per share to obtain majority control.
With the regulator’s suspension in place, the timeline for the offer and any required adjustments remains subject to the appeal process. The sources do not provide further details on the specific changes demanded by the regulator beyond indicating revisions to the offer terms.
