Brazil Petrobras To Sell Argentina Fertilizer Unit -Estado
July 10 2009 - 5:09PM
Dow Jones News
Petrobras Energy, a subsidiary of Brazilian state-run energy
giant Petrobras (PBR) is understood to be seeking to sell its
fertilizer unit at Campana, Argentina, the Estado news agency
reported Friday.
The Petrobras press office in Argentina wouldn't comment on the
story, which surfaced in Argentina's La Cronista newspaper, said
Estado who themselves said they later confirmed the information
from an anonymous source close to Petrobras Energia.
Petrobras acquired the fertilizer unit in 2002, when it bought
PeCom Energia.
Last year the plant had sales of about $200 million, 14% more
than in 2007.
The sale of the plant is believed to be related to falling grain
prices.
Market sources told Estado that Bunge Ltd. (BG) and Canada's
Agrium Inc. (AGU) were likely candidates to buy the unit.
The fertilizer plant story is the second rumored sell-off of
Petrobras assets in Argentina.
On Thursday, Petrobras told Brazil's securities commission, or
CVM, it wasn't in the process of selling part or all of its
Argentinean refinery at San Lorenzo nor any of its gas
stations.
"There are no negotiations underway to sell part or all of the
San Lorenzo refinery, nor service stations, owned by Petrobras
Argentina, PESA, located in Argentina," the note to the CVM
stated.
The Petrobras denial was in response to a recent article by
Brazil's Estado de Sao Paulo newspaper, which indicated Petrobras
was going to sell the refinery.
Attempts to reach Bunge and Agrium for comment were
unsuccessful.
-By John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086;
john.kolodziejski@dowjones.com