Spanish Gas Natural Fenosa is in talks with BG Group Plc to buy the UK oil and gas company's 65 percent stake in India's Gujarat Gas, in a deal valued at about $900 million, according to Reuters.

A three-member consortium of state-run Oil and Natural Gas Corp, Bharat Petroleum Corp Ltd and Gujarat State Petroleum Corp (GSPC) is the only other bidder in talks on buying BG's stake.

Shares in Gujarat Gas, which has a market value of about $1 billion, ended at 403.05 rupees on Friday.

The Spanish utility has a wide presence in Europe and North Africa and has been looking to expand internationally, mostly in Latin America. It currently has no presence in India.

Gujarat Gas, set up in 1980, supplies piped gas to 317,000 domestic and industrial customers and compressed natural gas to 144,000 users, mostly across Surat, Bharuch and Valsad in the western state of Gujarat.

The company also operates a 3,700-km (2,300-mile) gas pipeline network.

BG, which acquired control of the western India-focused gas distribution company in 1997, is keen to sell its stake in Gujarat Gas as part of restructuring its asset portfolio. Globally, BG Group focuses on exploration and production activities and liquefied natural gas.


Portada Staff

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