Pampa offers Petrobras about $1.2 billion for its Argentine unit

According to sources, Pampa Energia has offered approximately US$1.2 billion to Petroleo Brasileiro for its 67.2 percent stake in Petrobras Argentina.

This announcement comes after the board of Petrobras approved exclusive talks with Pampa for more than 60 days. The transaction could be closed in two months but there is no official agreement signed.

Petrobras Argentina is the Argentine-based subsidiary of Petroleo Brasileiro. The unit was established in 1993, and in 2001, expanded into 700 service stations with the purchase of Eg3. In 2003 the firm bought Petrolera Santa Fe/Pecom Energía. It expanded into electric grid operations with the purchase of a majority stake in Transener. 

Currently, Petrobras Energía is the second largest oil company in Argentina and it is among the four largest producers of oil and gas in the South American country. The firm is present in United States, Brazil, Bolivia, Ecuador, Mexico, Peru and Venezuela. The company is listed in Buenos Aires Stock Exchange and is part of Merval Index.