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Brazil: Petrobras launches second bid to sell LPG gas unit

 |  April 1, 2019
Brazil’s state-owned oil company Petrobras announced the sale of its subsidiary Liquigás, launching a disclosure stage for companies interested in acquiring the bottling, distribution and sale of natural gas (LPG) over large parts of the South American country.

Liquigás has a presence in 25 of the 26 Brazilian states and had already been offered for sale in 2016 by Petrobras. However, the business was stopped at the beginning of last year by the Administrative Council of Economic Defense (CADE), arguing that the sale at that time (to rival Ultragaz) would have created serious competitive risks in the domestic gas market, concentrating 45% of the market.

For the new process, the largest company in Brazil said that it will include criteria that guarantee healthy competition. “This is a new competitive process with the inclusion of criteria that seek to guarantee the competitiveness and isonomy of the process, while mitigating the risk of market concentration,” Petrobras said.

Full Content: Seeking Alpha; El País

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