Brazil regulator advises stopping Gaspetro sale

Brazil regulator advises stopping Gaspetro sale

Sao Paulo, 21 December (Argus) — Brazil oil and gas regulatory agency ANP is recommending that competition watchdog Cade block state-run Petrobras from selling its share in natural gas distribution subsidiary Gaspetro to a single buyer.

Compass, the natural gas subsidiary of Brazilian energy and logistics conglomerate Cosan, agreed in July to acquire a 51pc stake in Gaspetro from state-controlled Petrobras for R2.03bn ($397mn), contingent on Cade's analysis.

ANP's technical body said the transaction contravenes the objectives of Brazil's new gas law and the commitments the antitrust agency made with Petrobras to increase competition in the natural gas market. The regulator recommends Petrobras start a new sales process in which stakes in Gaspetro's regional units are offered separately, allowing prospective buyers to bid on Gaspetro's stake in each of 19 companies.