Brazilian fuel and lubes distributor, Cosan, has bought its gas equivalent.
The deal, sees Cosan S.A. take over Comgas from the UK's BG Group (fomerly British Gas) in a 3.4bn Real ($1.7bn) cash purchase. Subject to regulatory approval, the deal should be completed by the end of 2012.
BG has been keen to divest itself of a number of high value, non-core assets to help fund spending plans in other parts of the world, as well as reducing its debt - the Comgas sale likely to slash $1.1bn from its borrowings. BG has already pocketed $352 from selling its share of a Chilean LNG plant and is hoping to offload its stake in an Australian LNG project for around $2bn.
However, BG's latest Brazilian sale will not remove it from the country, with plans to increase gas production activities in the country, partly through an agreement with Cosan to evaluate and develop gas supply options. This will form just part of an aggressive $22bn capex spend over the next two years.