Brazilian Firms Split Rival Ipiranga

In a deal valued at $4 billion, Brazil's state oil company Petrobras, chemical maker Braskem, and chemical producer and fuels distributor Ultrapar are buying Ipiranga, a $15 billion-per-year Brazilian refiner and petrochemical maker. The transaction is a multistaged process whereby Ultrapar will buy Ipiranga and sell off some of its assets to Petrobras and Braskem. Braskem will get 60% of Ipiranga's petrochemical assets, and Petrobras will get the rest. Ipiranga generated about $1 billion in petrochemical sales in 2006. Braskem CEO José Carlos Grubisich says the acquisition is a step on the way to making his company one of the top 10 chemical companies in the world in terms of stock market value.