Petrobras Sells Liquigás for 3.7 Billion Reais

The Offer of R$ 3.7 Billion Made by the Consortium Was the Best Offered and the Transaction Will Still Be Submitted for Approval by the Competent Authorities of Petrobras Itself.

Petrobras confirmed on Thursday morning, November 7, the sale of its entire stake in Liquigás to the consortium formed by Copagaz, Itaúsa, and Nacional Gas Butano. The company announced the sale of the Liquigás gas cylinder distribution subsidiary in July

According to the state-owned company, the offer of R$ 3.7 billion made by the consortium was the best offered and the transaction will still be submitted for approval by the competent authorities of Petrobras itself.

“The transaction will still be submitted for approval by the competent authorities of Petrobras and the subsequent stages of the project will be disclosed to the market in a timely manner. This operation is aligned with the optimization of the portfolio and improvement of the company’s capital allocation, aiming to generate value for our shareholders,” the company pointed out in a statement.

In August, the state-owned company had received only two offers for the GLP Liquigás distributor; investors were reportedly spooked by changes in the distribution of GLP announced by the government and Petrobras, such as the end of brand exclusivity.

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Petrobras had previously sold Liquigás at the end of 2016 to Ultrapar for R$ 2.8 billion, but the deal was blocked by the Administrative Council for Economic Defense. Liquigás operates in the filling, distribution, and commercialization of LPG in Brazil through bottled and bulk business segments.

Roberto Castello Branco highlighted in July the divestments already carried out by Petrobras, stating that the company has accumulated 15 billion dollars in asset sales this year, and promised that there is “much more” to come.

“We have a broad divestment program… Others will do better than Petrobras. We will do our job very well in the exploration and production of oil and gas.”