June 6, 2019 / 7:09 PM / 19 days ago

Another Brazil justice OKs privatizations without congressional approval

BRASILIA (Reuters) - Brazilian Supreme Court Justice Carmen Lucia voted on Thursday to allow the divestment of state-run firms and subsidiaries without congressional approval, but added that all divestments, including of minority stakes, should be done through auction.

Before Lucia’s vote, two Supreme Court justices had voted in favor of requiring congressional approval of divestments at state-run firms and three had voted in favor of allowing privatizations without congressional approval.

The decision could have a huge impact on state-run oil firm Petroleo Brasileiro SA, which is executing a plan to divest $27 billion of non-core assets by 2023, including an $8.6 billion pipeline sale to Engie SA pending the ruling.

Reporting by Ricardo Brito; Writing by Gram Slattery; Editing by Bernadette Baum

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