MOSCOW (MRC) -- Petrobras rejected a binding proposal for the Gabriel Passos Refinery (REGAP) in Minas Gerais state, said Reuters.
Petrobras rejected the bid because the proposal was below its "economic and financial evaluation", the company said. It will now consider when it could start a new bidding process.
Petrobras had planned on selling several refineries, including some larger ones. However, it has succeeded in finding buyers for the smaller ones. Out of the five large refineries, it has sold only one, the Landulpho Alves refinery in Bahia state. It has four other large refineries that are still up for sale.
Brazil's president elect, Luiz Inancio Lula da Silva may choose to suspend the sale of the refineries. The Brazilian government can influence Petrobras's policies because it holds a majority of the company's common shares, entitling it to one vote for each share. The government also nominates the CEO and board members.
During his campaign for president, Lula said he opposes the privatisation of Petrobras. Lula's nominations to his cabinets could point to whether his administration will allow Petrobras to proceed with the remaining refinery sales.
We remind, Petrobras said it has signed a contract to sell the REMAN refinery in the northern state of Amazonas for USD189.5 MM to Ream Participacoes S.A., a subsidiary of distributor Atem. In a separate filing, however, the company formally known as Petroleo Brasileiro SA said it had failed to secure a buyer for the Abreu e Lima (RNEST) refinery after the interested firms declined to offer a bid. Petrobras said it would end the sale process, and analyze its next steps.