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October 11, 2021

Brazil’s Vibra intends to acquire 50% interest in Comerc for $590m

As per the deal, which is yet to receive Brazil's competition authority approval, Comerc will relinquish its IPO plan.

By Archana Rani

Brazil-based fuel distributor Vibra has reportedly agreed to acquire up to a 50% stake in energy trading company Comerc for $590m (R$3.25bn).

A part of the transaction, Comerc will scrap its plans for an initial public offering (IPO) to raise about $272.26m (R$1.5bn), according to Reuters.

Earlier, the news agency reported that Comerc secured eight fund managers to anchor its IPO.

The latest deal, which received approval from the Comerc board of directors, is yet to secure approval from Brazil’s competition authority CADE.

As part of the deal, Vibra will have convertible debenture. This will provide Comerc with $363m (R$2bn) in new cash and represent approximately 30% of the Comerc common shares. The conversion is valid till February 2022.

The transaction also includes an option for Vibra, formerly known as Petrobras Distribuidora, to acquire an additional stake of 20% in Comerc common shares for $226.8m (R$1.25bn).

Vibra expects the acquisition of Comerc to reposition it as an energy company focusing on the transition towards a low-carbon economy, reported Reuters.

In August, Vibra announced the creation of a trading joint venture with Copersucar, an ethanol producer.

The Copersucar-controlled new JV, which will be 49.9% owned by Vibra, will receive $84.8m (BRL440m) from Vibra.

Currently, Comerc owns a portfolio of products and services that reach approximately 2GW of average traded energy volume. It has more than 3,400 consumer units under management.

Earlier this year, Petrobras divested its stake in Rio Ventura cluster in the Brazilian state of Bahia to 3R Rio Ventura in a deal worth $96.9m.

The cluster consists of eight fields, namely Água Grande, Bonsucesso, Fazenda Alto das Pedras, Rio Pojuca, Tapiranga, Pedrinhas, Pojuca, and Tapiranga Norte.

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