MOSCOW (MRC) -- Petrobras, Brazilian state-run energy giant, has announced that its Board of Directors approved the restructuring of its petrochemical portfolio and the subsequent merger of its wholly-owned subsidiaries Comperj Participacoes, Comperj Estirenicos, Comperj MEG. and Comperj Poliolefinas, reported the company on its site.
The referred transactions will be submitted to a vote by shareholders in a Special Shareholders Meeting to be convened in due time.
The merger of Petrobras' affiliates is primarily designed to streamline the company’s corporate structure and restructure its petrochemical portfolio, since the transaction will lead to the consolidation of the petrochemical assets held by Petrobra and invested in Comperj Participacoes, Comperj Estirenicos, Comperj MEG and Comperj Poliolefinas, resulting in lower management costs, improved streamlining and alignment of business decisions, rationalization of the company’s activities and the simplification of procedures that reallocate investment resources.
Since it involves the merger of its wholly-owned subsidiaries, Petrobras’ capital will not increase and no new shares will be issued.
We remind that, as MRC wrote earlier, Brazilian environmental regulators will join Petrobras in appealing an injunction that halted work on a major USD8 billion Comperj refinery project in Rio de Janeiro state. The suspension stems from a case brought by federal prosecutors in 2008 that regulators thought had been resolved in 2009. The Comperj refinery will have installed capacity to process 165,000 barrels of crude oil per day when it enters operation in April 2015. A second phase, expected to be completed by 2018, would double capacity.
Petroleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 revenues.
MRC