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Brazil: CADE settles oil buyout case with $1.3M fine

By  |  August 29, 2013

Brazil’s antitrust regulator, CADE, announced the issuance of a $1.3 million fine to settle a case against OGX Petroleo e Gas Participacoes following the company’s buyout of an offshore oil block before the acquisition was cleared.

In an announcement posted by the watchdog Wednesday, CADE said the company agreed to pay the fine for “gun jumping.” OGX bought a 40 percent stake in the oil and natural gas block last November from state-owned Petroleo Brasileiro, also known as Petrobras. The acquisition was made for $270 million.

Reports say CADE decided to fine the company for the buyout instead of nullifying the deal.

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