Petrobras enters talks with potential buyers for their retailing business

Brazil's state-run oil company Petróleo Brasileiro SA is in talks with three potential buyers for a stake in their fuel distributing business before a planned initial public offering of that unit goes ahead later this year, reported the Wall Street Journal.

In a recent interview, Petrobras chief executive Aldemir Bendine stated there was interest from three “European and Asian” buyers for a part of their fuel retailing business, which distributes under the brand of BR Distribuidora. None of the interested buyers have entered exclusive talks.

BR Distribuidora is Brazil´s largest retailer with a network of 7,500 service stations across the country, controlling a 30% share of the market.

“This is a study, I am working with both models, the partner takes a smaller stake and then we have the IPO for the rest, in a way that we keep control of the company,” Mr. Bendine said.

The Brazilian oil giant is looking to raise money through an IPO later this year, in an effort to alleviate its massive debt and regain investors’ confidence on the back of a huge corruption scandal which saw four former executives arrested.