Galp Bioenergy to take Petrobras' 50% in biofuel JV

Photo by Steve Jurvetson (Flickr) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

Brazilian Galp Bioenergy BV is acquiring the shares it does not already own in Belem Bioenergia Brasil (BBB), the vegetable oil and biofuel business of state-run oil and gas giant Petroleo Brasileiro SA (BVMF:PETR4) or Petrobras.

The transaction is valued at BRL 24.7 million (USD 6.3m/EUR 5.6m) for 50% of BBB's capital stock. According to the filling, the money will be held by the buyer until December 2020 for potential indemnity payments.

Closing of the sale is subject to the fulfilment of a number of conditions precedent, among which is securing approval by watchdog regulator Cade. If and when the sale is completed, Petrobras will exit BBB while Galp will control 100% of the company.

This deal is part of Petrobras' divestment plan as the firm aims to optimise capital allocation. The stake in BBB is being sold by subsidiary Petrobras Biocombustiveis SA.

(BRL 1.0 = USD 0.255/EUR 0.228)

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