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Brazil’s Petrobras cedes control of fuel distributing unit

Posted at 8:04 AM, Jul 24, 2019
and last updated 2019-07-24 11:04:24-04

RIO DE JANEIRO (AP) — Brazilian oil giant Petrobras says it’s already sold off its majority share in its fuel distribution branch, and hopes the total sale will raise about $2.5 billion.

Petrobras said Wednesday it now has a 41.25 percent stake in the Petrobras Distribuidora unit, down from the 70 percent before the sale started Tuesday.

If it succeeds in raising the full amount, the firm’s stake would fall to 37.5 percent.

The shares were offered late Tuesday at 24.5 reais (about $6.525) each.

Brazilian President Jair Bolsonaro was elected with promises to pass liberal economic reforms, from privatizations to an overhaul of the country’s generous pension system.

Privatization is polemical in Latin America’s largest nation. But market observers expect Petrobras’ non-core activities, such as refining, also to be privatized.