Petrobras, Ultrapar in 'advanced talks' over LPG unit

Monday, October 17, 2016

Brazil's Petrobras is in "advanced talks" with industrial conglomerate Ultrapar over the sale of its liquefied petroleum gas (LPG) unit, the state-run oil company said in a statement.

Petrobras is selling Liquigás, as the unit is known, as part of a US$15.1bn divestment program, which it hopes to conclude in December.

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"The transaction still depends on the completion of negotiations, the approval of internal bodies at both companies and the relevant regulators," Petrobras said.

Liquigás' portfolio includes 23 operating centers, 13 depots, a storage and loading facility, four bottling units and a distribution network of around 4,000 resellers.

Petrobras has raised around US$10bn from divestments in the past two years as it seeks to overcome a crippling corruption scandal and reduce debt.

The biggest deal so far has been the US$5.19bn sale of a 90% stake in the Nova Transportadora do Sudeste gas pipeline unit to a consortium led by Brookfield Asset Management.

Petrobras has also offloaded oil and gas fields, refineries and other distribution assets as it seeks to ease the industry's largest debt load and overcome a crippling corruption scandal.

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