August 23, 2019 / 5:28 PM / 2 months ago

Brazil's Itausa delivers highest bid for Petrobras LPG unit: sources

FILE PHOTO: A logo of the Brazil's state-run Petrobras oil company is seen in Rio de Janeiro, Brazil March 25, 2019. REUTERS/Sergio Moraes

RIO DE JANEIRO/SAO PAULO (Reuters) - A group led by investment firm Itausa Investimentos SA delivered the highest bid to acquire Brazil’s state-controlled oil company Petroleo Brasileiro SA LPG distribution unit, two people with knowledge of the matter said.

Petrobras, as the oil company is known, expects to sign a final agreement to sell Liquigas Distribuidora SA by November, after further talks with the leading bidder, one of the sources said.

The second source said Itausa and its partner, local LPG distribution firm Copagaz, will now discuss details of the sale contract, in a similar process to the sale of gas pipeline network TAG to France’s Engie.

After a draft of the sale contract is ready, Petrobras may ask for possible new bids from other interested parties. The company received three binding bids for Liquigas this month. United Arab Emirates government-owned Mubadala Investment Company and another group led by Netherlands’ SHV Energy also bid.

Itausa and Petrobras did not immediately comment on the matter.

Petrobras had sold its LPG unit in 2016 to local rival Ultrapar Participações SA for 2.8 billion reais ($687.3 million), but the deal was blocked by antitrust regulator CADE.

Reporting by Rodrigo Viga Gaier in Rio de Janeiro and Tatiana Bautzer in Sao Paulo; Editing by Howard Goller

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