• Categories
  • Archives

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

Ipiranga gas station in Brazil Ipiranga gas station in Brazil

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:

  • Show Comments (5)

  • Armando Rozário

    VENEZUELA NEWS BULLETINS’s URL
    Here is the correct URL:

    http://www.franzlee.org/pandemonium01266.html

    You may also check the record profits of Petrobras & PDVSA in a Brazilian website, consult the column “Digital Photo Array” at this URL: http://www.jornalorebate.com [Text in English] posted by A.R. last month
    Armando RozÀƒ¡rio – Cabo Frio & MacaÀƒ© – March 21, 2007 – petroamerica@gmail.com

  • Armando Rozário

    Petrobras vs. PDVSA in Brazil?
    The price per litre of ethanol in Brazil is about US$0.90 (ninety cents). The price of one litre of gasoline in Venezuela is about $0.05 (five cents). The ratio is anout 19:1 In gasoline the gap is even greater!
    There is a huge gap and Petrobras wants to defend its share of the market in Brazil. You may check the e-mail which I had sent to Professor Franz J.T. Lee and confirm what I had just posted, here is the URL:
    http://www.franzlee.org/pandemonium01266html [VENEZUELA NEWS BULLETIN] or at:
    http://forum.atimes.com/topic.asp?TOPIC_ID=10001
    Can Petrobras compete with PDVSA in Latin America? In North America?
    Armando RozÀƒ¡rio – Cabo Frio & MacaÀƒ©
    March 21, 2007

  • conceicao

    Letting one company establish an effective refining monopoly is a prescription for disaster, especially a company with the government as a majority shareholder. The spread between what a
    refiner pays for crude and then can sell it for fluctuates greatly in a free market. With a monopoly, the refiner can basically set the spread anywhere it wants and tell the consumer to lump it.
    Petrobras should be divesting refineries not acquiring them. And, the market shares Colgate and AmBev enjoy in Brasil are harmful to consumers and exist only because of anticompetitive mergers.
    The government should not let Petrobras have another refinery any more than it should let Rio Doce squeeze competitors through its control of infrastructure assets like ports and railroads. Why
    allow one but not the other?

  • Ric

    This is good news
    Other were considering the acquisition of Ipiranga. Petrobras is much better that the others.

  • conceicao

    Petrobras’s participation in this deal should be disallowed on antitrust grounds. Petrobras
    already produces almost all of Brasil’s automotive fuel and letting it acquire one of the two
    refineries that it does not already own is bad for consumers and the overall economy. Reminds me of
    the government allowing Colgate to buy Kolynos and Brahma to buy Antarctica. If Lula or whoever is
    trying to play Putin with a deal like this, he need look no farther than Mexico to see the trouble Pemex
    is in and how the lack of competition in areas like telecommunications is holding back Mexico.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Is Sending Technicians to Help Chavez Deal with Energy Crisis

President Hugo Chavez of Venezuela, faced with serious electricity and water problems,  has asked ...

F Is for Fine Food in Fortaleza, Brazil

Fresh seafood is the thing to have when visiting Fortaleza, the capital of the ...

Brazil Catching Up to China on Leather Exports

Leather exports from Brazil should rise from the US$ 1.8 billion, recorded last year, ...

Egypt Wants Brazil’s Technology on Deep-Water Drilling and Ethanol

The Egyptian minister of Petroleum, Sameh Fahmi, is in Brazil to attend the International ...

Brazil Goes After Middle East Petrodollars

The São Paulo Stock Exchange (Bovespa) expects greater presence of Middle Eastern investment in ...

It Was the World’s Second Biggest Bank Heist Ever. But in Brazil Nobody Saw a Thing.

The story of Brazil’s biggest bank heist ever starts like this: Three months ago ...

Brazil Is Bleeding Money and Ideas

Anyone can see now that Brazil’s Workers’ Party (PT) administration had no alternatives, never ...

A Traditional Brazilian Tile Maker Shows Its Stuff at Dubai’s Big 5

Brazilian ceramic wall and floor tile maker Porto Ferreira is going to participate in ...

The Lord Mayor Goes Zapping the NYSE in Brazil

The Lord Mayor of the City of London, Sir John Stuttard, has been visiting ...

The Shame Katrina Blew Open and Brazil’s Eternal Katrina

The September 11 edition of Brazil’s daily O Globo carried a surprising piece of ...