BG in talks on Comgas stake sale

Sale talks: BG confirms it is in talks with Cosan on possible purchase of Comgas stake

Britain’s BG Group has said it is in preliminary talks with Brazilian ethanol giant Cosan on a potential sale of its 60.1% stake in Brazilian gas distributor Comgas.

In a statement to the London stock exchange on Thursday, BG confirmed it was in “preliminary discussions on a possible transaction” regarding the stake, adding it would keep the market “duly informed” on the talks.

The news comes just a month after a spokesman for the British gas producer told Reuters the company was happy with its current position in Brazil while also keeping all its assets under continuous review.

The remarks came on foot of market speculation on the prospect of a partial initial public offering in which BG would sell down its lucrative Brazilian oil and gas finds.

BG countered by vowing to invest billions in research and development toward becoming Brazil’s biggest foreign producer, according to a report in the Financial Times.

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