Shell has agreed to sell its stake in Brazilian gas distribution company,Comgás, to Brazil's Cosan for US$380 million.
Comgás is Brazil’s largest gas distributor with Cosan currently a 63.4 per cent shareholder.
The deal is expected to be completed by the end of the year and is subject to customary closing conditions, plus regulatory approvals.
“This transaction allows us to focus our efforts in Brazil on areas where we see the most strategic value for Shell longer-term,” said Shell’s Integrated Gas and New Energies Director, Maarten Wetselaar. “Brazil is an important country to Shell, and our portfolio of high quality assets and development opportunities positions us well for the future.”
Shell in a statement said that it retains diverse operations in Brazil that are not affected by this transaction, including its Deep Water portfolio and Downstream business, which includes participation in Raízen, one of the leading biofuel producers in Brazil.