Brazil’s Petrobras Sells 35 Percent of its Service Station Chain for US$2.5 Billion

RIO DE JANEIRO, BRAZIL – Petrobras has sold, on Wednesday, July 24th, 35 percent of Brazil’s biggest service station chain, BR Distribuidora, for US$ 2.5 billion (R$ 9.6 billion), to 160 investors from different countries, such as the United Kingdom, Canada, and the United States.

The Rio-based oil giant still holds 37 percent of the share capital of BR Distribuidora, which is now becoming a privately owned company.

The banks involved in the operation are Merril Lynch, Citi, Credit Suisse, JP Morgan, Santander, Itaú, and XP.

The privatization of BR Distribuidora will provide billions of cash to Petrobras and is likely to double its share liquidity. It is the biggest stock offering since April 2015 and the largest deal in the new administration’s effort to sell state-owned enterprises via capital markets.