Galp expands biofuel footprint

Sept. 3, 2019

The Administrative Council for Economic Defense (Cade) approved, without restrictions, the acquisition by Galp Bioenergy of a 50% stake in Petrobras Biocombustíveis (Pbio) in Belem Bioenergia Brasil (BBB). With the approval, Galp becomes BBB’s sole parent.

The contract between the two subsidiaries was signed in early August. Headquartered in Belém (PA), BBB was formed in 2011 by Petrobras and Galp for the production of vegetable oil and biofuel.

On August 8, Petrobras announced that it sold its BBB stake to Galp for R $ 24.7 million, which will be retained by the Portuguese company until December 2020 for potential compensation payments.

According to the state-owned company, the transaction is aligned with portfolio optimization and improved capital allocation of the company, aiming at generating value for its shareholders.

Source: Brasil Energia Magazine

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