Good morning! Petrobras diluted its shares in oil distribution company BR Distribuidora, continuing its divestment plan. The hunt for cell phone hacking suspects, believed to be the source of news website The Intercept. Brazil’s country risk at a 5-year low. And new criteria for pesticides.
Petrobras diluted in deal for oil distribution company
Brazil’s state-owned oil and gas company Petrobras concluded on Tuesday a follow-on offering of shares, selling 35 percent of the capital of BR Distribuidora, an oil distribution subsidiary, for BRL 9.6bn. The deal diluted Petrobras’ stake from 71 to 37 percent, making BR Distribuidora a privately controlled company. The process was considered a success, with demand being four times higher than the initial offering.
Why it matters. BR Distribuidora leads the fuel distribution market in Brazil, with a 27-percent market share and a footprint in every Brazilian state.
- Its privatization is expected to give the company more efficiency and better governance. The deal brings a welcome injection of capital to Petrobras, which has a bold, USD 15bn divestment plan.
- After a deal with antitrust authorities, the company will soon auction 8 of its 13 refineries — privatizing half of its output capacity in the sector.
Risks. While...