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LatinNews Regional Monitor: Brazil & Southern Cone - 07 June 2019

In brief: Brazil

* Brazil’s federal supreme court (STF) has ruled that the federal government does not need congressional approval to sell off the subsidiaries of state-owned and mixed-capital companies, including those owned by local state and municipal governments. The sale of main parent companies, however, would need to be sanctioned by the legislature and would require a legal amendment in the case of companies that were created by law (such as oil company Petrobras and Banco do Brasil). The STF also ruled that parent companies must be sold through a bidding process, but subsidiaries do not need to be submitted to a bidding process provided competitiveness requirements are met. This is a win for President Jair Bolsonaro’s government, which hopes to bring in R$80bn (US$20.6bn) through the privatisation of public companies this year.