Petrobras Receives Three Binding Offers for Liquigás Subsidiary

RIO DE JANEIRO, BRAZIL – Petrobras has received three offers for Liquigás, a liquefied petroleum gas cylinder unit (LPG) of the state-owned company, said two sources to Reuters, as part of an asset sale process; last Friday was the deadline for the submission of binding proposals by interested parties.

Liquigás operates in the bottling, distribution, and sale of LPG in Brazil through the bottled and bulk business segments.

“We had three offers and very good ones,” said one of the sources this Monday, speaking anonymously as information about the deal has not been made public.

The company expects to close the sale of Liquigás — the leader in the segment of bottled LPG, with ample national presence — by November, added the source, who did not disclose the bidders’ names.

A second source stated that, after negotiations, the winning proposal would be taken to the board of directors for a final decision.

Liquigás’ bidding period had been postponed by just over a week after demands from potential investors, who needed more time to carry out the appropriate assessments of the business unit, as published by Reuters earlier.

The company is one of dozens of assets that Petrobras is puttomg up for sale in a broad divestment campaign aimed at reducing debt and prioritizing oil exploration and production in deep waters.

The company has already raised US$15 billion (R$60 billion) with the sales of assets in the year-to-date through July.