- Petrobras (PBR +2%) pops in early trade after Brazil's Supreme Court ruled state-run firms do not need congressional approval to sell their subsidiaries.
- Also, Supreme Court Justice Edson Fachin, who ruled in May to suspend PBR's $8.6B sale of the TAG pipeline unit to France's Engie (OTCPK:ENGIY +2.4%), reversed his decision in light of the full court's ruling, allowing PBR to proceed with the divestment.
- The decisions will allow PBR to move forward with its plan to sell $27B worth of non-core assets by 2023.
- The ruling also is a positive for other state-run firms such as power company Eletrobras (EBR +2%), which is also eyeing divestments.