Cosan to acquire BG Group Comgas stake
Cosan is to acquire BG Group's stake in Brazilian gas distribution firm Comgas.
Cosan has agreed to purchase BG Group's 60.1 per cent stake in Comgas in a deal worth approximately $1.8 million (£1.1 million).
The Brazilian energy producer is expected to complete the acquisition of a majority holding in Comgas - Brazil's largest gas distribution firm - by the end of the year, subject to regulatory approval.
Shell holds an 18.1 per cent stake in Comgas, with the remainder owned by the public thanks to the firm's listing on the Sao Paulo stock exchange.
Cosan is likely to have called in merger and acquisition consultants for the second time this year, as the company announced in March it is acquiring UK-based lubricant supplier Comma Oil & Chemicals from Esso in a deal worth no more than $100 million.
BG Group's chief executive Sir Frank Chapman said it had taken the decision to sell its Comgas stake in keeping with its "ongoing portfolio rationalisation and funding diversification programmes".
"We look forward to concluding this deal as part of our plans to release some $5 billion of capital in the next two years," he added.
Posted by Edel Quinn
Source: BG Group press release, May 3rd