Feb. 9 (Bloomberg) -- Cia Energetica de Minas Gerais, Brazil’s third-largest electricity company by market value, agreed to buy 40 percent of a gas distributor from Petroleo Brasileiro SA.
The sale of Gas Brasiliano Distribuidora SA, for which no valuation was disclosed, is pending the fulfillment of some unspecified conditions, according to a regulatory filing by Belo Horizonte, Brazil-based Cemig, as the electricity company is known. Cemig is expanding as part of its target to become Brazil’s second-largest energy company by revenue behind Petroleo Brasileiro, known as Petrobras, by 2020, chief executive officer Djalma Bastos said Jan. 30.
Petrobras, Latin America’s largest company by market value, is seeking to raise $13.6 billion from asset sales and cost cuts as it pursues the biggest spending plan in the oil industry. Petrobras announced plans to sell a refinery in Japan and an Argentine electricity distributor last year.
The sale is Petrobras’ first this year. The company agreed to sell Royal Dutch Shell Plc a 50 percent stake in two oil blocks in Tanzania last year.
--With assistance from Peter Millard in Rio de Janeiro. Editors: Andrew Hobbs, Baldave Singh
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