Business
GPA Sells Gas Stations to Ultrapar as Part of Asset Divestment Strategy
Brazilian retail giant GPA has finalized a deal to offload its chain of gas stations in Sao Paulo state to conglomerate Ultrapar, marking a significant move in its ongoing strategy to divest from fuel industry assets.
GPA, predominantly known for its presence in the food retail sector, had previously announced plans to divest its gas station network as part of a broader financial restructuring initiative.
The transaction encompasses 49 gas stations located in Sao Paulo, the most populous and economically robust state in Brazil. Additionally, GPA has also entered into agreements to sell off other gas stations spread across eight different Brazilian states to undisclosed buyers.
Pending approval from Brazil’s antitrust regulator CADE, the deal is valued at approximately 200 million reais (€33.8 million), with the 49 stations in Sao Paulo alone fetching a price tag of 130 million reais (€22.00 million) in the sale to Ultrapar, a major fuel distributor in the region.
Until the official transfer to the buyers is completed, GPA will continue to operate these gas stations, retaining the profits generated by the respective businesses during this interim period.
Ultrapar controls Ipiranga, a prominent player in the Brazilian fuel distribution sector, making this acquisition a significant move in consolidating its market presence further.
Bradesco BBI provided advisory services to GPA for the transaction, emphasizing the strategic importance of this divestment.
Earlier in May, GPA reported financial results for the quarter, revealing a net loss primarily attributed to tax implications and impairment charges related to a real estate transaction.
The company posted a net loss of 407 million reais (€74.6 million) for continuing operations in the period, highlighting the challenges faced by the retail sector amidst economic fluctuations.
This strategic transaction underscores GPA’s commitment to streamlining its operations and focusing on its core food retail business amid evolving market dynamics and financial considerations.
