Colombia’s Ecopetrol Bids for Control of Brazil’s Brava Energia

COLOMBIA · ENERGY

Ecopetrol, Colombia’s state-controlled oil company, has launched a tender offer to buy about a quarter of Brazil’s Brava Energia, a step in a larger plan to take control of the oil and gas producer.

What Ecopetrol is offering

Ecopetrol’s Brazilian subsidiary launched the offer on Brazil’s main stock exchange after receiving its approval. The bid covers about 116.1 million common shares, roughly 25% of Brava, at R$23.00 each, around US$4.1 per share.

That price is about a 20.9% premium over the share’s volume-weighted average of the prior 90 days. The offer runs until June 25, 2026, when an auction is due to take place.

The company has said it expects to finance the purchase through a bridge loan. The deal still requires regulatory clearances, including from Brazil’s competition authority.

A step toward control

The tender offer is part of a transaction first announced on April 23, when Ecopetrol agreed to buy shares from a group of large Brava shareholders. Together, the steps are meant to give Ecopetrol a 51% controlling voting stake.

Brava Energia was formed in 2024 from the merger of two Brazilian oil and gas firms. It produces crude and natural gas from offshore and onshore fields across several basins and ranks among the largest independent producers listed in Brazil by reserves and output.

For the year to December 2025, Brava reported earnings before interest, taxes, depreciation and amortization of about US$806 million, on a margin near 39%, according to figures Ecopetrol cited from the company.

Why the deal matters

Ecopetrol says taking control of Brava would add to its reserves, production and earnings while expanding its presence in Brazil. The company already holds energy-transmission and exploration interests across the Americas.

The move comes at a delicate moment for the firm’s finances. In April, the rating agency Moody’s lowered Ecopetrol’s global credit rating one notch, citing concerns about government influence over the company.

For the region, the bid is a sign of how Latin American energy companies are buying assets across borders. Whether it succeeds will depend on the auction and on the regulatory approvals still pending.

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Frequently Asked Questions

What exactly did Ecopetrol announce?

Its Brazilian subsidiary launched a tender offer for about 25% of Brava Energia at R$23.00 per share, around a 20.9% premium. The offer runs until an auction on June 25, 2026.

What is the bigger goal?

To reach a 51% controlling stake in Brava, building on a deal announced on April 23 to buy shares from large shareholders. Full completion needs regulatory approvals.

What is Brava Energia?

A Brazilian oil and gas producer formed in 2024 from a merger, with offshore and onshore fields across several basins. It is among the largest independent producers listed in Brazil by reserves and output.

How will Ecopetrol pay for it?

The company has said it expects to use a bridge loan. The move follows an April credit-rating downgrade by Moody’s tied to concerns over government influence.

When will it be settled?

The auction is set for June 25, 2026, but closing depends on regulatory clearances and other conditions, so the final outcome is not yet certain.

Connected Coverage

For more on the region’s energy sector, see our coverage of Brazil’s Petrobras and the oil market. For another cross-border deal, see our report on a foreign takeover in Brazil.

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