November 13, 2018 / 5:55 PM / in a month

UPDATE 1-Brazil VP-elect says Bolsonaro may privatize Petrobras distribution unit

(Adds details on BR Distribuidora, other comments)

NEW YORK, Nov 13 (Reuters) - Brazilian president-elect Jair Bolsonaro wants to privatize the fuel distribution unit of state-controlled oil company Petroleo Brasileiro SA, Bolsonaro’s running mate told an investor conference in New York on Tuesday.

Shares of Petrobras Distribuidora SA, also known as BR Distribuidora, jumped more than 6 percent after the comments by Vice President-elect Hamilton Mourao.

The oil giant, known as Petrobras, took the distribution unit public in December 2017 and still owns 71 percent of its capital. BR Distribuidora had a market capitalization of 25 billion reais ($6.7 billion) at Monday’s close.

Speaking via videoconference to an audience of investors and company executives, Mourao also said a proposal for Boeing Co to acquire control of Embraer SA’s commercial jet unit was “a very good one” for the Brazilian planemaker.

The Brazilian government is expected to decide soon on the deal, which it has the right to veto via a “golden share” in Embraer.

Mourao also said the Bolsonaro government, which takes office in January, plans to approve an overhaul of Brazil’s pension system by late June next year. He said a tax reform was also necessary. (Reporting by Tatiana Bautzer Editing by Christian Plumb, Brad Haynes and Rosalba O’Brien)

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