Petrobras negotiates to sell interest in sugarcane company

By Erin Voegele | October 24, 2016

On Oct. 21, Brazil-based Petrobras announced it is beginning negotiations with Tereos International S.A. regarding the sale of 45.9 percent interest of Petrobras Biocombustível in the sugarcane company Guarani S.A. The company also said it is hiring Banco Itaú BBA to advise in the transaction.

According to Petrobras, this action is part of its divestment program and is in line with the company’s strategic plan to exit biofuel production activities.

On Sept. 20, Petrobras announced plans to withdraw from biofuel production and several other lines of business as part of a new strategic plan. Moving forward, the company is expected to focus on the gas and oil industries.

Petrobras did not elaborate on future plans for its biofuel assets in its strategic plan. According to information published to the company’s website, Petrobras operates in the ethanol production industry through partnerships and holds stakes in 10 ethanol plants. These facilities are located in Brazil and Africa. Petrobras also owns three biodiesel plants, and operates two others in partnership with another company.