(Corrects in headline and paras 1 and 2 reference to liquified petroleum gas, not liquified natural gas)
RIO DE JANEIRO, Nov 28 (Reuters) - Brazilian gas company Copagaz expects to become the market leader for liquified petroleum gas (LPG) and triple its market share after it closes a deal to buy Liquigas, which state-giant Petrobras is selling, an executive told Reuters.
Pedro Zahran Turqueto, the company’s top executive for business development, said Copagaz should now have a 25% market share in LPG. Copagaz has agreed to buy 80% of Liquigas. Petrobras has said that the the price for 100% of the company is 3.7 billion reais ($881.71 million).
Copagaz was founded in 1955 and currently has an 8% market share, Turqueto said. Brazil’s antitrust regulator still needs to approve the deal.
“We understood that (Liquigas) was a very important asset, something strategic that the we had to make an effort to acquire,” Turqueto said. “We are going to have great capilarity now, good positioning in all of Brazil’s regions.”
They intend to preserve the brand Liquigas, which has good name recognition in the country. Copagaz also plans to more than double its investments in 2020 to between 200 and 250 million reais. It will try to grow in Brazl’s northern region, where it is still underrepresented.
$1 = 4.1964 reais Reporting by Marta Nogueira Editing by Alistair Bell