Total gets "deal" as Petrobras unloads assets

|About: Petrobras - Petroleo Bra... (PBR)|By:, SA News Editor

Total (NYSE:TOT) yesterday agreed to buy assets, including stakes in Brazilian oil fields and thermal power plants from Petrobras (NYSE:PBR) for $2.2B. The deal - expected to close in 60 day - will net Petrobras $1.6B in cash.

Analysts are mostly positive on the deal as it cuts capex and leverage, as well as creates possibilities for future partnerships with Total.

BAML says the assets were sold at a notable discount to their value, but the benefits of raising cash outweigh the cheap price.

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