Petrobras sells its LPG subsidiary to Ultrapar

PetrobrasBrazilian state oil company Petrobras sells its liquefied petroleum gas (LPG) subsidiary for 819 million USD to fuel distribution giant Ultrapar. The transaction for offloading of Liquigas Distribuidora, which is subsidiary of Petrobras, is subject of approval by the government anti-trust agency CADE and Financial Commission, due to changes in working capital and the net debt position of Liquigas between December 31, 2015 and the transaction’s closing date. The transaction with sale of Liquigas is part of that asset-sale program, aimed at trimming Petrobras’ massive debt of 130 billion USD and part of the restructuring program, which target salling of 15.1 billion USD in assets over a 2-year period.

“At the beginning when we announced that we were going to make this divestment came out some news reporting that the sale would be for 1.5 billion reais. Now we sell for almost double. So we are all very pleased with the results of this divestment”, said Manager of Acquisitions and Divestments pf Petrobras, Anelise Quintao.

Liquigas Distribuidora is major LPG company on Brazilian marker, which present in almost all Brazilian states, with 23 operative centers, 19 deposits, 1 storage and rail base, and a network of around 4,800 authorized resellers. The market share of the company amounts to 23%.

Ultragaz is the largest liquefied petroleum gas (LPG) distributor in Brazil, serving more than 7 million households. The Petrobras subsidiary, Liquigas operates in the bottling, distribution and sale of liquefied petroleum gas (LPG) operating in almost all Brazilian states. The company counts on 23 operational centers, nineteen warehouses, and a network of approximately 4,800 authorized resellers. Ultragaz has a 23% share of the Brazilian market and if the deal is approved, the company will receive market share of 46%.