Brazilian energy company Eneva (ENEV3.SA) has submitted a non-binding proposal to merge with local fuel distributor Vibra Energia (VBBR3.SA), the company said in a securities filing on Sunday.
Eneva said it had sent a letter to Vibra’s board of directors proposing the stock-for-stock merger of equals, which it dubbed a “unique opportunity for both companies and their shareholders given its solid strategic rationale”.
Eneva has a market capitalization of 20.7 billion reais ($4.22 billion), according to LSEG Workspace data, while Vibra Energia’s market cap currently stands at 25.9 billion reais.
Both firms have dispersed ownership but asset manager Dynamo is a common shareholder. Other major shareholders in Eneva include BTG Pactual (BPAC3.SA) and Cambuhy, while Vibra has Ronaldo Cezar Coelho as a large investor.
If completed, a deal “could result in significant efficiency and capital allocation gains,” Eneva said, adding that the two companies’ businesses complement each other.
Vibra did not immediately respond to a request for comment.
($1 = 4.9059 reais)
Reporting by Gabriel Araujo; Editing by Valentine Hilaire and Kim Coghill
