March 2, 2018 / 1:13 PM / 4 months ago

Petrobras evaluating options for Liquigas after sale veto

RIO DE JANEIRO (Reuters) - Brazil’s Petroleo Brasileiro SA is reviewing options to divest Liquigas Distribuidora SA, its liquified petroleum gas (LPG) distribution unit, and still plans on exiting the segment, the state-controlled oil company said on Friday.

FILE PHOTO: The logo of Petrobras, state-controlled Petroleo Brasileiro SA, is seen at their President Bernardes Refinery in Cubatao, Brazil June 8, 2017. REUTERS/Paulo Whitaker/Files

The comments came in response to a report by local newspaper Folha de S.Paulo, suggesting Petrobras would seek an initial public offering for the unit.

“Petrobras is still evaluating alternatives for divesting Liquiqas and still adheres to the strategy included in its business plan to completely exit the (liquified petroleum gas) market,” Petrobras said in an emailed statement.

Earlier this week, antitrust watchdog Cade rejected a bid by Brazil’s top LPG distributor, Ultragaz, owned by conglomerate Ultrapar Participacoes Ltda to buy the unit for 2.8 billion reais ($860 million).

Cade’s board found that the merger with Liquigas, Brazil’s second largest LPG distributor, had anticompetitive risks and could hurt consumers.

Reporting by Alexandra Alper Editing by Jeffrey Benkoe and David Gregorio

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