Gaspetro is sold to the Cosan group with authorization from the Administrative Council for Economic Defense

Gaspetro, which owns shares in 18 state natural gas companies, was bought by Cosan, with approval from Cade

The Administrative Council for Economic Defense, Cade, authorized this Wednesday, the 4nd, the sale of Petrobras' stake in Gaspetro. The fraction of 22% of the state company was acquired by Compass, which is part of the group Cosan, in July 2021 for BRL 2,03 billion. Gaspetro owns shares in 18 state natural gas companies and is owned by Petrobras (51%) and Mitsui Gás e Energia (49%).

In effect, the purchase causes Cosan to enter the gas sector in 18 states. However, in order to simplify the Court's decision, Compass committed itself to transfer the acquired stake in 12 companies. If, by any chance, the disinvestment is not carried out, the directors declared that they may appeal the decision, since it was taken based on the information provided by Compass, from Cosan.

Cade's law authorizes the annulment of decisions taken based on “false or misleading information”. The emission of gas is a natural domain, since the cost of the infrastructure does not allow competition. As of its announcement, the transaction, involving Gaspetro, Cosan and Cade's authorization, raised competition issues. This happened because Cosan already owns the largest natural gas distributor in the country, called Comgás, in São Paulo. At the beginning of 2022, it acquired a portion of Sulgás, in Rio Grande do Sul, the state distributor, whose other shareholder is Gaspetro.

Compass has already signed contracts with numerous state distributors

Cosan's subordinate, Compass, operates in the consumption of natural gas and energy and has already signed contracts with several state distributors of gas to commercialize the input, despite not having started the sale yet. The Cosan group still has plans to build an LNG (liquefied natural gas) regasification structure at the Port of Santos. The input that would be marketed and transported by a gas pipeline constituted by the Cosan group and sold to Comgás, both of Cosan's economic group.

The pipeline, which is named Subida da Serra, is the subject of questions by gas producers and consumers, in addition to the National Agency of Petroleum, Natural Gas and Biofuels, ANP, which declares it has the competence to authorize it or not. The agency of the State of São Paulo had validated the construction of the infrastructure as a distribution gas pipeline.

ANP requested disapproval of the transaction involving Cosan and Gaspetro

Although the Cosan group's expansion in the gas market is on the rise, with the sale of Gaspetro, approved in summary rite by Cade's General Superintendence, the ANP had asked the board to disapprove the transaction involving the companies, Gaspetro and Cosan. The ANP filed an appeal and the deal was taken to Cade's Court, which decided to approve it this Wednesday, the 22nd.

About the Cosan group

Cosan, created from a joint venture between Cosan and Shell, Raízen is a wholly-owned energy company, which is a reference in sugar and alcohol production and is also one of the largest companies in the fuel distribution and commercialization sector in the country, in addition to being one of the four largest companies in terms of profit in Brazil.

Compass Gás e Energia, a Cosan subsidiary company that operates and invests in four business segments (infrastructure, distribution, commercialization and trading). The company establishes itself as a complementary platform of activities to explore opportunities in the natural gas and energy sector in the country, and which already has in its portfolio the largest piped natural gas company in the country, Comgás.