Ecopetrol's proposed acquisition of Brava Energia faces a fresh regulatory hurdle after Brazil's securities regulator, the CVM, escalated the matter to its full board.
The move effectively freezes the takeover offer as authorities review the compensation structure for minority shareholders, according to reporting from The Rio Times.
Bank of America recently maintained an underperform rating on the Colombian state-owned oil major, projecting a potential 30% decline in shares over the near term.
The dispute centers on the payout terms for minority investors in Brava Energia, a key asset in Ecopetrol's strategy to expand its footprint in Latin America.
By referring the appeal to the colegiado, the CVM has signaled that the initial resolution was insufficient, prolonging the uncertainty surrounding the deal's timeline and final terms.
This development compounds existing headwinds for Ecopetrol.
Bank of America recently maintained an underperform rating on the Colombian state-owned oil major, projecting a potential 30% decline in shares over the near term.