Brazil antitrust watchdog CADE blocks Ultragaz purchase of Liquigas
Petroleumworld 03 02 2018
Brazil antitrust watchdog Cade on Wednesday rejected the bid by Ultragaz Participações Ltda, a distributor of liquefied petroleum gas (LPG), to buy rival Liquigas Distribuidora SA, a subsidiary of state-controlled oil company Petroleo Brasileiro SA.
Ultragaz, owned by conglomerate Ultrapar Participações SA , is the top LPG distributor in Brazil, followed by Liquigas. Cade's board found that the merger had anticompetitive risks and could negatively impact on consumers.
The deal, announced in 2016, was valued at 2.8 billion reais ($862.65 million). Petrobras said in a securities exchange filing that it would seek alternatives for divesting from Liquigas.
Ultragaz said the deal was terminated following Cade's decision and that it would pay a penalty of 286 million reais to Petrobras, according to a securities filing. ($1 = 3.2458 reais)
Reporting by Leonardo Goy and Roberto Samora Writing by Jake Spring Editing by Leslie Adler from Reuters
reuters.com / 03 01 2018
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