Brazil’s Petrobras Buys Ipiranga Group for US$ 4 Billion

Ipiranga gas station in Brazil Government-controlled Brazilian oil giant Petrobras, Ultra group, in the gas, chemical and transport sector, and petrochemical company Braskem signed an agreement to acquire the businesses of Ipiranga group.

The value of the operation will be US$ 4 billion. Ipiranga operates in the oil refining, petrochemical and fuel distribution sectors.

Last year Ipiranga had net revenues of 30 billion reais (US$ 14.40 billion), with earnings before interest, taxes, depreciation, and amortization (EBITDA) of 1 billion reais (US$ 480 million) and net profit of 534 million reais (US$ 256 million).

"In line with its strategic planning, Petrobras is strengthening its presence on the national petrochemical sector, consolidating its distribution networks, mainly in the North, Northeast and Midwest, and expanding its presence in the various sectors in which it operates," stated Petrobras president José Sérgio Gabrielli de Azevedo.

Ultra will have the Ipiranga fuel distribution network in the South and Southeast of the country, and will continue running it under the Ipiranga brand. Petrobras will take over the Ipiranga distribution network in the North, Northeast and Midwest, and will have up to five years to use the Ipiranga brand, after which it will have to be replaced for the Petrobras Distribuidora brand.

Braskem will manage 60% of the assets of Ipiranga Group in the petrochemical sector. Petrobras will keep the other 40% of the Ipiranga group petrochemical activities.

The Ipiranga Refinery, in the southernmost Brazilian state of Rio Grande do Sul, will be equally controlled by Petrobras, Ultra Group and Braskem, who agree to proceed with the activities. The details of the agreement are included in a statement sent this morning to the Securities and Exchange Commission of Brazil (CVM).

Anba

Tags:

You May Also Like

Brazil Creates Prize to Stimulate Reaching of Millennium Goals

The Development Goals of the Millennium already form part of the agenda of social ...

Brazil Poised to Become World’s Second Biodiesel Producer Behind Germany

Brazil may soon leap from the fourth to the second position among the main ...

Brazil’s Referendum, a Rebellious Act That Makes No Difference

In a small Brazilian city, José Maria da Silva woke up on Sunday, October ...

End of Subsidies Will Pull 500,000 Out of Poverty, Says Brazil’s Lula at Sorbonne

On the first day of his visit to France, Brazilian President Luiz Inácio Lula ...

World Bank Helps Improve Slums in Brazil

The World Bank plans to expand its investments in urban infrastructure all around the ...

Brazil and LatAm Rush to the Rescue of Tumbling Markets and Currencies

Countries in Latin America, including Brazil, moved quickly this week to face the global ...

Brazilian Agriculture on the Road to Grow 17% and Bring US$ 75 Billion

Brazil's Ministry of Agriculture, Livestock and Supply made an upward revision of its estimate ...

Brazilian Eco-Tourism Gets US$ 32-Million Push from Government

The Environment minister of Brazil, Carlos Minc, announced that, until September, the Brazilian government ...

Lula Left US$ 76 Bi in Unpaid Bills to His Successor, Some as Old as a Decade

The administration of former president Luiz Inácio Lula da Silva left the Dilma Rousseff ...

Government Doesn’t Speak for Us, Say Brazilian Farmers in Hong Kong

A funny thing happened to minister of Development, Industry and Foreign Trade, Luiz Fernando ...