Petrobras to buy remaining 70% of Logum for $110M
In Brazil, Petrobras has entered into an agreement to acquire the remaining 70% of the share capital of Logum Logística S.A. (Logum), currently held by the companies Raízen Energia S.A. (30%), Copersucar S.A. (30%) and Uniduto Logística S.A. (10%). Petrobras already holds the other 30% of Logum’s share capital and, after the completion of the operation, will now own 100% of the company.
The total value of the acquisition will be R$ 620 million, whose payment will be made in three installments as follows: R$ 300 million at the close of the operation (closing); R$ 160 million after 12 months; and R$ 160 million after 24 months. The values are subject to the price adjustments provided for in the contract.
The acquisition presents attractive economic and financial conditions for Petrobras, considering the growth of the ethanol market, with emphasis on the expansion of corn ethanol production in the Midwest region. The business positions Petrobras in the country’s main ethanol logistics corridor.
The transaction also promotes relevant operational synergies by enabling the integration of Logum’s pipeline network to the Petrobras System, with potential generation of more value for the company’s logistics assets. Logum’s infrastructure connects important producer hubs in Brazil to Petrobras’ logistics network and the port terminal of Ilha d’água.
Category: Fuels
