Petrobras Argentine units approve merger plan

BUENOS AIRES (Reuters) - Directors at the Argentine units of Brazilian state energy firm Petrobras (PETR4.SA) (PBR.N) said on Tuesday they had agreed to merge.

In a statement to the Buenos Aires Stock Exchange, they said Petrobras Energia (PER.BA) would absorb Petrobras Energia Participaciones (PCH.BA) in a reorganization aimed at cutting costs and simplifying their structures.

Petrobras Energia Participaciones has a 75.8 percent stake in Petrobras Energia -- one of Argentina's top oil and natural gas producers.

It has oil and gas exploration and production ventures elsewhere in South America as well as Argentine refineries, petrochemicals and electric power holdings and a chain of gasoline stations.

The statement said Petrobras Energia would apply for its shares to be listed on the New York stock exchange under the same conditions that shares in Petrobras Energia Participaciones are currently listed.

The shake-up, which is seen taking effect on January 1, 2009, must still be approved by shareholders.

(Reporting by Walter Bianchi; Writing by Helen Popper and Braden Reddall)