Total R $500 million purchase of Governor-elect stations network of MG

The French Petroleum Group Total closed the purchase of mining network of fuel stations Zema, which belongs to the family of the future Governor of Minas Gerais, Romeu Zema (new party), found the State. The transaction, valued at about $500 million R, marks the entry of the French company in fuel distribution in the country. Owner of a network with about of 300 gas stations and convenience stores, in Minas Gerais, Zema oil is the largest Division of Miner group billing, founded in 1923 by the mining family in Araxá. The Group Zema, which grossed some R $4.4 billion last year, operates in several business-retail stores of furniture, appliances and clothing, car dealerships to financial services. Only the invoice fuel distribution Division R $2.5 billion. The State found that the Total group returned to map active in the area of fuel distribution in Brazil since the beginning of the year. The mining group was approached by the French and the two hook up conversations in July. The announcement of the acquisition is scheduled for today. The Estáter advised the French oil in the operation and the ABC Bank, grupo Zema. Sought, the Total reported, through your advice, you don't comment market rumors. The Group has also not Zema on the subject. In Brazil since 1975, the Total practice areas: exploration and production of oil and gas. Fourth largest oil and gas company in the world, the company has gained strength in the country to cast off the camp area of Pound in the first auction of pre-salt, in 2013. In January, it has completed the acquisition of the assets of Lapa and Iara, both in the pre-salt Santos basin. The oil company was already a few years ago looking for fuel distribution assets to buy in Brazil. In 2014, was about to buy the network Ale, but negotiations stopped after the death of the President of the French group, Christophe de Margerie. Concentrate the fuel distribution market in Brazil is highly concentrated. Led by BR Distribuidora, controlled by Petrobras; Raízen (joint venture Cosan and Shell) and Ipiranga (Ultra group), which together holds over 70% market share, the few assets for sale in this sector are controlled by the companies of "white flag". The last major transaction of this sector was the sale of control of Germany to Switzerland Glencore, in June this year. Considered the great jewel of sector, Ale, fourth largest network of filling stations in the country, with about of 1500 units and about 4% share in the domestic market, had already been probed by various companies. In addition to the Total, Raízen had already reviewed the business in the past. In 2016, the Ale received a proposal of R $2.2 billion Ipiranga Group by 100% of the jobs network, but the operation was barred by the Administrative Council for economic Defense (Cade) in 2017, claiming concentration in the sector. With the purchase of Zema, the Total will have less than 1 percent of the market.