Vibra, a Brazilian fuel company, will buy the remaining Comerc stake for $642 Million

Brazilian fuel distributor Vibra announced on Wednesday that it had signed an accord to exercise its rights to purchase the remaining stake of power generator and trader Comerc at a cost of 3.52 billion Reis ($642 millions).

Vibra purchased nearly 50% of Comerc through a deal made in 2022. It had the right to purchase the remaining shares until 2026.

Vibra stated in a filing of securities that it agreed to accelerate the exercise because it believes it will have a "more favorable outcome" if it buys now, rather than wait until 2026. It cited factors such as immediate advantages needing to taken advantage.

Vibra said in a separate filing that it expects Comerc to achieve adjusted core earnings (earnings before interest, tax, depreciation, and amortization, or EBITDA) of 1 billion reais by 2024, and 1.3 billion in 2025.

Vibra said that it also expects to save 1.4 billion reais over the next few years through what it calls fiscal, financial, and efficiency synergies. ($1 = $5.4831 reais). (Reporting and editing by Kyra Madry; Andre Romani)

(source: Reuters)