SYDNEY (Reuters) – Australia’s AMP Ltd and former US-based Ares Management applicants are close to agreeing a joint venture that would give American funds control over its asset management business AMP Capital, sources with knowledge of the deal said.
The arrangement, which could be finalized and announced in the next week, will utilize Ares’ distribution network to distribute the AMP investment fund, the person said, asking not to be named because negotiations are private.
The AMP representative, who on February 11 said Ares had withdrawn a A $ 6.36 billion ($ 5.03 billion) takeover offer for the entire company, declined to comment.
Ares’ representatives also declined to comment when contacted by Reuters.
Bloomberg reported on Tuesday that the deal could value the asset management business more than A $ 3 billion and that AMP would retain a minority stake, citing people with knowledge of the matter.
Following a review in the past six months seeking to find a buyer for AMP as a whole or its unit, the Sydney-based company said last week it had closed all but one process.
Its Australian and New Zealand wealth management business and banking division, are no longer under review but will continue to negotiate with Ares about potential sales or partnerships involving AMP Capital.
The deals are uncertain, said Chief Executive Francesco De Ferrari at the time.
($ 1 = 1.2653 Australian dollars)
Reporting by Paulina Duran in Sydney; Edited by David Evans
RIO DE JANEIRO (Reuters) -EIG Global Energy Partners have sold Belgian Fluxys some of South America’s largest natural gas pipeline, removing regulatory barriers to buying a larger share of the Brazil-Bolivia pipeline, the EIG CEO said on Tuesday.
US-based EIG wants to bid on a 51% stake in the pipeline owned by Brazilian state-owned oil company Petrobras, Chief Executive Blair Thomas told Reuters, as part of a broader move to enter the country’s burgeoning natural gas industry.
He said the antitrust issue blocking EIG’s bid for a stake in Petrobras was resolved by the sale of an undisclosed 27.5% stake in EIG in the Brazilian part of the pipeline known as Gasbol, linking Bolivia’s reserves to Brazil.
“It’s about freeing us up for a broader strategy,” Thomas said in a videoconference interview.
He said EIG, which manages a fund focused on energy assets, aims to create private sector alternatives to processing and transporting gas from major oil companies as the country develops the biggest offshore discovery of the century, known as pre-salt.
EIG is poised to spend billions to join partners in acquiring pipelines, processing plants and ultimately natural gas production in Brazil, said Thomas, as supply and demand for fuel grows in Latin America’s largest economy.
“We believe the energy transition and natural gas have a key role in that,” said Thomas.
The EIG stakes in Brazil come as Petroleo Brasileiro SA, as the state company is called, accelerates asset sales, ending what was almost a state-owned monopoly on natural gas five years ago.
He said EIG was also looking at the middle-aged offshore fields of Petrobras producing 150,000-200,000 barrels per day, including the legacy fields of Albacora and Marlim.
SHIFT AWAY FROM BOLIVIA
Gasbol links natural gas reserves in the Andean country to Brazil through two separate entities: Gas TransBoliviano SA (GTB) which owns and operates the Bolivian section and Transportadora Brasileira Gasoduto Bolívia-Brasil SA (TBG), its Brazilian partner.
The EIG fund holding the Brazil-Bolivia pipeline investment will be closed, Thomas said. The Bolivian side of the 2,600-kilometer (1,600-mile) pipeline, in which EIG owns a 38% stake, will eventually be sold as well, he said, without providing details.
Brazil has imported most of its natural gas from Bolivia in recent decades. But new oil and gas discoveries are slowly reducing this dependence and could turn Brazil into a gas exporter one day, Thomas said.
Together with cheap liquefied natural gas (LNG) imported by ships, Thomas said, offshore discoveries are likely to feed a growing consumer market driven by industrial use.
On Monday, EIG-backed natural gas company GNA received its first imported LNG cargo in Brazil. The supercooled fuel will be used in power plants which are expected to start commercial operations in the first half of 2021.
Brazil will now be a regular importer of LNG, Thomas said, and in 10-15 years the country may be ready for its first export plant, another EIG investment target.
“We really want to be first in that,” he said.
Reporting by Sabrina Valle and Gram Slattery Editing by Brad Haynes, Paul Simao, Grant McCool and David Gregorio
RIO DE JANEIRO (Reuters) – EIG Global Energy Partners has sold its stake in the Brazilian portion of the Bolivia-Brazil natural gas pipeline, known as Gasbol, to Fluxys Belgium NV, the US-based company’s chief executive said. Tuesday.
The sale of EIG’s 27.5% stake in Brazil’s pipeline for an undisclosed amount ends a regulatory conflict that could prevent it from bidding on a 51% stake in the same asset that Brazilian state-owned oil company Petrobras is planning to sell. a competitive bid, he said.
EIG intends to purchase a larger share of this pipeline, as well as additional assets, and invest in Brazil’s natural gas industry, CEO Blair Thomas told Reuters in a video interview.
EIG, which manages a fund focused on energy assets, has a multi-billion dollar firepower to acquire assets in transportation, processing and ultimately natural gas production in Brazil, Latin America’s largest economy.
“It’s about freeing us up for a broader strategy,” said Thomas.
The special fund is where the pipeline investment will be closed, said Thomas. The Bolivian side pipeline, in which EIG has a 38% stake, will eventually be sold as well, he said, without disclosing further details.
The Bolivia-Brazil natural gas pipeline connects natural gas reserves in the Andean nation to Brazil’s main economic and industrial hub, according to the EIG website.
The pipeline consists of two separate entities: Gas TransBoliviano SA (GTB) and Transportadora Brasileira Gasoduto Bolívia-Brasil SA (TBG), which own and operate the Bolivia and Brazil sections respectively.
Selling prices remain at the lower end of what EIG thinks is fair for the Brazilian pipeline section, Thomas said.
Future acquisitions in Brazil could be similar in size to the $ 8.7 billion gas pipeline that Petrobras sold to France’s Engie SA and Canada’s Caisse De Depot Et Placement Du Quebec (CDPQ) in 2019. EIG is second in the closed bid competition. , he said.
Reporting by Sabrina Valle and Gram Slattery; Edited by Paul Simao and Grant McCool
RIO DE JANEIRO (Reuters) – Washington-based EIG Global Energy Partners has sold its stake in the Brazilian portion of the Bolivia-Brazil natural gas pipeline, known as Gasbol, to Fluxys Belgium NV, Chief Executive Blair Thomas said in an interview on Tuesday. .
The deal, whose value was not disclosed, comes as EIG moves to buy a larger share of the same pipeline as well as additional assets and invest in Brazil’s natural gas industry, Thomas said. EIG has a multi-billion dollar firepower to acquire assets in transportation, processing, and ultimately natural gas production in the South American country.
(This story corrects the spelling of the CEO’s name in paragraphs 1 and 2.)
(Reuters) – Boral Ltd said on Friday that it would sell its North America-based Meridian Bricks business to Austrian brick producer Wienerberger for $ 250 million and exit brick operations as the pandemic averts the construction market.
Australia’s top building materials maker Boral said it expects to report a pre-tax accounting profit of around A $ 10 million ($ 7.59 million) from divesting its North American businesses, and has shifted focus to its domestic operations, which generate about half its profits. .
Wienerberger could not be reached for comment.
Boral owns 50% of the Meridian Brick, while the remainder is managed by US-based Lone Star.
“Since forming a bricks joint venture in the US with Lone Star in 2016, the plan has been to prepare the business for sale,” Chief Executive Officer Zlatko Todorcevski said in a statement.
For fiscal 2020, the company marks A $ 1.35 billion in non-cash impairment, of which A $ 1.22 billion is linked to assets in Boral North America and its investment in the Bata Meridian joint venture.
In October, Boral gave up his plasterboard business and said he was considering leaving the United States.
($ 1 = 1.3179 Australian dollars)
Reporting by Nikhil Subba in Bengaluru, Editing by Sherry Jacob-Phillips