Petrobras closes US$450mn Agip do Brasil purchase

The BR Distribuidora subsidiary of Brazil's federal energy company Petrobras (NYSE: PBR) has completed a 100% purchase of the Agip de Brasil unit of Italian oil company Eni for US$450mn, Petrobras said in a statement Monday. A different Petrobras subsidiary bought all debt related to Agip do Brasil. Included in the purchase are 28 liquefied petroleum gas (LPG) bottling plants and 28 distribution depots for the Tropigás, Liquigás and Novogás brands. Together the three brands serve 35 million end-users through 5,000 distributors and control 21.4% of Brazil's LPG market. With the purchase, BR Distribuidora also acquired Agip's rights to sell lubricants in 5,000 points of sale, thus gaining 3.7% of the lubricants market. The distributor also picks up 1,600 service stations in 10 states, plus nine wholly owned fuels distribution centers and stakes in another 10 centers. Total distribution volume adds up to more than 100,000 cubic meters. Because of contractual reasons, BR Distribuidora will take on its new assets under the name Sophia do Brasil for a limited period, the statement said. Petrobras had announced in June that it had come to an agreement with Eni over the sale, which Petrobras said is part of the strategy to increase market share in the fuel retail market, as outlined in its 10-year strategic plan.