MercoPress. South Atlantic News Agency

Petrobras sells off a majority share of its distribution branch

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

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 US$ 2.5 billion. Petrobras said on Wednesday it now has a 41.25% stake in the Petrobras Distribuidora unit, down from the 70% before the sale started Tuesday.

If it succeeds in raising the full amount, the firm’s stake would fall to 37.5%. The shares were offered late Tuesday at 24.5 reais (about US$ 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.