By Brazil Stock Guide – Reag Investimentos (ticker: REAG3) issued a clarification on Tuesday after a report by O Globo claimed the firm was in discussions with Galapagos Capital (ticker: GLPG) regarding the sale of its assets. In the initial communication, Reag stated that Galapagos was among potential buyers, but hours later retracted the statement. A follow-up note confirmed that any talks were brief and “did not progress due to a lack of interest from Galapagos.”
Galapagos Capital responded in an official statement, denying involvement and asserting that it had no interest in acquiring Reag’s assets or any of its affiliates. “Galapagos Capital reiterates that it is not engaged in any negotiations or discussions regarding the purchase of Reag Investimentos or its assets,” the company said.
This clarification comes amidst a tense period for Reag Investimentos, which is under scrutiny following a massive operation by the Brazilian Federal Police (PF) targeting money laundering in the fuel sector. The operation, which spanned 10 states, uncovered a billion-dollar fraud scheme with ties to criminal factions, including the notorious First Command of the Capital (PCC). Reag confirmed its headquarters was raided as part of the investigation but emphasized its full cooperation with authorities.
The Brazilian investment firm is facing significant pressure as it navigates legal challenges and public scrutiny. It remains to be seen how the ongoing investigation will affect Reag’s operations and its relationships within the market.
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