Brazil’s Compass buys controlling stake in gas distributor Compagás

Brazil’s Compass Gás e Energia acquired a controlling stake in Paraná state’s gas distributor Compagás for 906 million reais (US$167mn).

Compass belongs to the Cosan group, while Compagás was controlled via a 51% stake by Companhia Paranaense de Energia (Copel), which was privatized last year. 

Compass is the controller of holding Commit Gás (formerly Gaspetro), which owns 24.5% of Compagás. 

The remaining 24.5% in Compagás is held by Mitsui Gás, which is a Compass partner in Commit, with a 49% stake. 

Compagás’ concession contract runs through June 2054, and the company serves over 54,000 customers in 16 municipalities with 821,000m3/d of natural gas through a pipeline network spanning 880km.

The acquisition is conditioned by Copel’s shareholders not exercising their pre-emptive rights as well as regulatory approvals.

In a statement, Copel said the deal is part of a strategy to focus on its core business and the decarbonization of its business portfolio. 

THE COMPASS PORTFOLIO

Compass controls Rio Grande do Sul state’s gas utility Sulgás, São Paulo state’s Comgás and Necta Gás Natural, as well as holding Norgás, which owns minority stakes in gas distributors in the states of Ceará (Cegás), Alagoas (Algás), Sergipe (Sergás) and Pernambuco (Copergás), as well as a majority stake in the concessionaire in Rio Grande do Norte (Potigás).  

Norgás may be sold to Infragás e Energia, recently acquired by Energisa, which has a promissory share purchase agreement with Compass. 

The company also holds minority stakes in Mato Grosso do Sul state’s MSGás, Santa Catarina’s SCGás, and Rio de Janeiro’s CEG-Rio. And Edge, a solutions provider for the unregulated or free gas market, is owned by Compass.