Brazil’s Petrobras sets new rules for Liquigas deal, aiming to lure more bidders

SAO PAULO (Reuters) – Brazilian oil company Petroleo Brasileiro SA released new rules for businesses that will bid due to the liquefied petroleum gas (LPG) subsidiary Liquigas Distribuidora, as outlined by a filing on Tuesday.

Hoping to boost the quantity of companies bidding, Petrobras, as the state-run oil business is known, reduced the amount of revenue a competitor can offer as compared with Liquigas sales, during times of a consortium.

Two weeks ago, Petrobras stated that rivals with more than Ten percent of business from the Brazilian LPG distribution market cannot have a very stake in the consortium which is higher than 40 % of Liquigas' revenue.

But based on new rules in the documents filed on Tuesday, rivals may possibly a stake inside consortium higher than 30 % of Liquigas revenue, to try to lure more participants to the potential consortium.

Restrictions for rivals are aimed towards keeping antitrust authorities from blocking a great deal, which happened in Petrobras' first start to sell Liquigas in 2019.

Banco Santander (MC:SAN) Brasil SA has long been hired to look after the sale. Buyers may contact Santander by April 19 to formalize its interest.