In May 2026, the Colombian state-owned company Ecopetrol (NYSE: EC / BVC: ECOPETROL) stated its interest in acquiring the Brazilian oil company Brava Energia (B3: BRAV3) and aims to acquire the remaining 25% stake necessary to gain control of the company via a public tender offer (OPA). Offering a price of R$ 23 per share and an estimated valuation of roughly $ 2.1 billion USD, this valuation offers roughly a 20% premium over the price of the stock at the time of the announcement, but still remains below the two-year high of around R$ 30.

CVM and Regulatory Controversies

The process of acquiring companies that generate over R$ 750 million (approximately $150 million USD) in revenue in Brazil requires approval from CADE (Administrative Council for Economic Defense). In the case of publicly traded, open-market companies like Brava Energia (B3: BRAV3), the CVM (Securities and Exchange Commission of Brazil) is also involved. The CVM does not “approve” market competition, but it regulates and oversees transactions involving the issuance of shares or publicly traded companies.

CADE approved the transaction with no restrictions back on June 1, 2026, but the CVM still has to check some details of the transaction.

In this case, Machado da Costa from Radar Econômico reported that, according to inquiries sent to the company and disclosed by a person familiar with the matter, the regulatory body requested explanations about sensitive points of the transaction. Among the points raised are potential stock purchases by significant shareholders, administrators, or members of the board of directors, in addition to the possibility that Ecopetrol (NYSE: EC) itself had previously acquired shares.

The most sensitive point, however, is the design of the offer. The CVM questions the price difference between the value paid to the block of selling shareholders and the price offered to minority shareholders.

The concern, according to a person familiar with the topic, is to determine if the rented shares had as a counterparty any party directly or indirectly involved in the transaction. The stock borrowing was reportedly agreed upon at a rate close to 35% per year and would involve a significant slice of the company’s capital, estimated at around 9%.

The Future of the Company

Even with some questions pending, the deal looks to be on the way to being completed, with the debt owners (debenture holders) having approved the sale last week on June 8.

With the acquisition, Ecopetrol (NYSE: EC) will cement its interest in the Brazilian oil sector. This interest started in 2025 when the company showed interest in Petrobras’s (B3: PETR4 / NYSE: PBR) Polo Bahia cluster, another mature Petrobras field with very similar characteristics to the assets of Brava Energia.

At the time, Jorge Martínez, who heads Ecopetrol‘s Brazilian operations, stated to The Rio Times: “We believe Brazilian onshore has great potential, especially for natural gas,” outlining a strategy that leverages Ecopetrol’s expertise in Colombian terrestrial fields.

About Brava Energia

Brava Energia (B3: BRAV3) was created with the merger of Enauta and 3R Petroleum in 2024, two of the biggest independent oil companies in Brazil, and holds a mix of onshore and offshore fields.

Both companies specialize in mature oil fields and driving value from investing in these mature assets. 3R Petroleum acquired a mix of onshore oilfields from Petrobras (B3: PETR4 / NYSE: PBR) starting in 2014, and Enauta brought a mix of onshore and offshore oilfields in the southeast and northeast of Brazil from different companies, with highlights being the Papa-Terra field and Polo Potiguar.