SAO PAULO, March 19 (UPI) -- Brazil's Petrobras said Monday it was along with partners was buying the Ipiranga Group for $4 billion.
In a statement on its Web site, Petrobras said it, the Ultra Group and Braskem reached an understanding to buy Ipiranga Group businesses, consolidating and increasing petrochemical and fuel distribution sector businesses.
The Ipiranga Group operates in the oil refinery, petrochemical and fuel distribution sectors and last year registered $14.4 billion in net revenues.
"Based on its strategic planning, Petrobras has reinforced its active presence in the domestic petrochemicals industry, consolidating its position in distribution, especially in the North, North East and Midwest, and has increased its presence in various sectors in which it operates," Petrobras President José Sérgio Gabrielli de Azevedo said in the statement.
Ultra Group will buy Ipiranga in the name of the other partners. It will then make a public offering to purchase common shares held by Ipiranga Group minority shareholders. Braskem and Petrobras will then submit offers to shareholders to delist Copesul.
Ultra Group will then incorporate preferred shares held by Companhia Brasileira de Petróleo Ipiranga, Distribuidora de Produtos de Petróleo Ipiranga and Refinaria de Petróleo Ipiranga minority shareholders, who will receive preferred shares in Ultrapar.
In the final step, petrochemical assets will be sold and handed over to Braskem and Petrobras, the statement said.
Fuel-distribution businesses absorbed by Petrobras will reinforce the company's distribution activities in the North East, North and Midwest, the statement said.
