May 10 - Acquisition of Gas Brasiliano Distribuidora

Source Press Release
Company Petrobras (IFRS US$ Current)ENI S.p.A. 
Tags Deals, Pipelines/ tankers/ distribution
Date May 27, 2010
Petróleo Brasileiro S.A. - Petrobras announces that, through its subsidiary Petrobras Gás S.A. ("Gaspetro"), it signed yesterday with ENI an agreement to acquire 100% of Gas Brasiliano Distribuidora S.A. ("GBD"), for approximately $250 million, subject to adjustments based on the working capital  at closing.

GBD holds the concession for the natural gas distribution activities in northwestern São Paulo state, an area covering 375 cities, supplying to the industrial, commercial, residential and transportation sectors. GBD´s concession was granted in December 1999, for a period of 30 years, extendable for an additional period of 20 years. In 2009, GBD´s distribution network reached 734.5 km, supporting gas sales of approximately 529,000 cubic meters per day.

This acquisition will position Petrobras in the distribution activity of the largest Brazilian natural gas market, the São Paulo region, which is near to the entrance of the gas supplied by Bolivia and transported by Gasbol pipeline and gas reserves in Southeastern Brazil.

The completion of the transaction is subject to certain conditions, including regulatory approvals from relevant authorities in Brazil.

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