Brazilian retailer GPA has agreed to sell its network of gas stations in Sao Paulo state to conglomerate Ultrapar as part of a broader push to divest from assets in the fuel industry.
GPA, whose core operations are in food retail but also owns 71 gas stations across the country, had announced last year plans to sell off the fuel station chain as part of a divestment strategy to reduce financial leverage.
The Ultrapar deal involves 49 gas stations in Sao Paulo, Brazil's most populous and wealthiest state. GPA also said in a securities filing it had agreed to sell other gas stations in eight different Brazilian states to unnamed buyers.
Until the effective transfer to the buyers, these gas stations will be operated by GPA, including the appropriation of the profits produced by the respective operations, the company added.
The Transaction
The total station sale was priced at around 200 million reais (€33.8 million) – with the 49 assets bought by Ultrapar alone valued at 130 million reais (€22.00 million), according to a separate Ultrapar filing.
The deal still requires approval from Brazil's antitrust watchdog CADE. Ultrapar controls Ipiranga, one of the South American country's largest fuel distributors.
GPA was advised by Bradesco BBI for this transaction.
Earlier in May, the Brazilian food retailer said its first-quarter net loss for continuing operations widened by nearly 28% from the year-ago period, weighed down by tax effects and an impairment related to a real estate sale.
The company reported a net loss for continuing operations of 407 million reais (€74.6 million) in the quarter.
News by Reuters, additional reporting by ESM.
