Petrobras acquires Gas Brasiliano
O Estado de S. Paulo
Brazilian Petrobras and Italian Eni announced yesterday an agreement for the sale, to the Brazilian State-owned company, of Gas Brasiliano (GBD), a piped gas distributor that operates in the interior of the State of São Paulo. The US$ 250 million operation marks the starring of the Brazilian State-Owned company in the São Paulo market of gas, the largest of the country. For Eni, it means the end of its activities in the segment of sale of fuels in the Brazilian market.
The negotiations started at the end of last year, when Eni contracted Santander to seek possible parties interested in acquiring GBD. Besides Petrobras, companies like the Japanese Mitsui, Cemig and Cosan visited the data room opened by the bank. "Petrobras has great interest in the market of São Paulo and it would hardly lose that fight", said an insider.
Indeed, the management of Petrobras has never hidden the intent of operating in São Paulo. The main focus was Comgás, the largest of the Country, which supplies the metropolitan region of the capital. The controllers of the company, BG and Shell, however, continue insensitive to the offers. Eni, on its turn, started the restructuring of its portfolio after the financial crisis, and that led to the sale of the asset.
"That was a great deal for Petrobras, because it strengthens its participation in the gas sector. Even though the distance between Gas Brasiliano and the leader of the sector (Comgás) is big, the company increases its bargaining power, especially because it creates an alternative to flow the input", said the Professor of the Institute of Electrotechnics and Energy Engineering of the University of São Paulo, Virginia Parente.
Petrobras currently has interest in 18 piped gas distributors, most in partnership with State Governments and with the Japanese Mitsui. The operation gives rise to criticisms on the great market concentration in the hands of the company, which is also the only fuel supplier to the Brazilian market. The agreement announced yesterday establishes Petrobras will have 100% of Gas Brasiliano after it receives the approval of the regulating agencies.