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In
March 2007 we carried out the acquisition of the fuel and lubricant
distribution businesses of Ipiranga Group in the South and Southeast
regions, in one of the largest acquisition transactions ever carried
out
in Brazil.
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Ultrapar
acquires Ipiranga’s fuel distribution businesses in the South and
Southeast regions - on March 19, 2007, Ultrapar, together with Petrobras
and Braskem, announced the acquisition of the Ipiranga Group, in
one of
the largest acquisition transactions ever carried out in Brazil.
Ultrapar
acquired the fuel and lubricant distribution businesses in the South
and
Southeast regions of Brazil, keeping the Ipiranga brand. The transaction,
for Ultrapar, consists of 4 steps, being: (i) the acquisition of
the
shares owned by the families that made up the controlling block of
the
Ipiranga Group (carried out on April 18, 2007) (ii) the carrying
out of a
mandatory tender offer for the common shares held by the minority
shareholders of CBPI, RPI and DPPI (tag-along offer), a request for
which
was filed with the CVM on May 02, 2007, (iii) the exchange offer
of the
preferred shares of CBPI, RPI and DPPI and (iv) the split of the
assets
acquired between Ultrapar, Petrobras and Braskem. It is estimated
that the
entire transaction will be completed by
4Q07.
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As
a
result of this acquisition, Ultrapar, the largest LPG distributor
in the
country, has also become the second largest fuel distribution company
in
Brazil, with a market share of approximately 15% of the Brazilian
market -
with market shares that range from 17% to 40% in the regions in which
it
operates (South and Southeast) - and approximately 3,300 service
stations.
Ipiranga’s estimated results from the businesses acquired by Ultrapar in
2006 amounted to net revenues of R$ 19 billion and R$ 340 million
of
EBITDA.
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The
distribution of fuels and lubricants is an activity whose main success
drivers are similar to those of the distribution of LPG: a major
brand,
logistics efficiency and efficiency in managing the resellers network.
These components combined with its higher capacity for investment,
put
Ultrapar in a position to benefit from growth opportunities, which
can be
leveraged by the improvement in income among the Brazilian population
-
already being reflected in record nationwide vehicles sales - and
by
Brazil's competitiveness in bio fuels, particularly in the production
of
ethanol. At Ipiranga, Ultrapar will apply the same management methods
used
in its businesses, focusing on the sustainable growth, alignment
of
interest and simplicity and agility of the decision
process.
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The
results of the distribution and lubricants business of South and
Southeast
regions acquired from the Ipiranga Group will begin to be consolidated
in
Ultrapar’s results as from April.
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