Eletrobras Resolves Legal Dispute with Petrobras in $235 Million Deal

• Eletrobras will pay Petrobras 1.16 billion reais ($234.88 million) to resolve a legal dispute.
• The agreement ends all judicial disputes related to the lawsuit.
• This removes a source of uncertainty and allows both companies to focus on their core businesses.

Brazilian power company Eletrobras (ELET6.SA) announced on Tuesday that it has reached a settlement agreement with state-run oil firm Petrobras (PETR4.SA) to resolve a legal dispute over “compulsory loans.” Under the terms of the agreement, Eletrobras will pay Petrobras 1.16 billion reais ($234.88 million).

In a securities filing, Eletrobras stated that the agreement puts an end to all judicial disputes related to the lawsuit. The specific details of the compulsory loans and the nature of the dispute were not disclosed.

The settlement comes as both companies grapple with challenging market conditions. Eletrobras has been struggling with high debt levels, while Petrobras has been impacted by falling oil prices.

Despite the challenges, the settlement is seen as a positive development for both companies. It removes a source of uncertainty and allows them to focus on their core businesses.

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