Brazilian energy company Eneva has proposed a non-binding merger with local fuel distributor Vibra Energia, according to a securities filing.

Eneva, with a market capitalization of 20.7 billion reais ($4.22 billion), has sent a letter to Vibra’s board of directors suggesting a stock-for-stock merger of equals. This merger, according to Eneva, presents a unique opportunity for both companies and their shareholders due to its solid strategic rationale.

Meanwhile, Vibra Energia’s market cap currently stands at 25.9 billion reais ($5.28 billion).

Both Eneva and Vibra Energia have dispersed ownership, with asset manager Dynamo being a common shareholder. Other major shareholders in Eneva include BTG Pactual and Cambuhy, while Vibra has Ronaldo Cezar Coelho as a large investor.

If the merger is completed, it could result in significant efficiency and capital allocation gains, as the businesses of Eneva and Vibra Energia complement each other, as Eneva stated.