Petrobras leaving LPG sector in Brazil

ANKARA (AA) - Brazilian oil company Petrobras approved the sale of its wholly owned subsidiary Liquigas, in a bid to gradually leave the liquefied petroleum gas (LPG) sector, the company announced on Tuesday.

Liquigas operates in the bottling, distribution and trading of LPG.

Petrobras sold its subsidiary company to Ultragaz, a wholly-owned subsidiary of Ultrapar, a Brazilian company operating in fuel distribution sector, for the amount of 2.67 billion Brazilian real (approx. $850 million).

Conclusion of the transaction is subject to compliance with preceding conditions negotiated.

The transaction is aligned with Petrobras’ strategic plan to withdraw entirely from the LPG distribution and petrochemical business between 2017 and 2021, the company said.