Ultrapar Bags Texaco’s Brazil Operations

Ultrapar is buying Texaco’s Brazilian fuel marketing business from Chevron for BRL1.16bn. The transaction is to be paid with Ultrapar’s own cashflow, the company says. The acquisition comprises of approximately 2,000 service stations and 48 distribution terminals, Ultrapar says. The purchase will allow Ultrapar’s gas station network Ipiranga to get national coverage, the company says. Ipiranga’s and Texaco’s operations will create a network of 5,000 service stations, comprising 23% of the Brazilian market, Ultrapar says. Merrill Lynch advised the Brazilian company on the purchase, a company spokeswoman says. In June, Ultrapar acquired 100% of port terminal operator Uniao Terminais for BRL482.7m. Freshfields was the legal advisor to Ultrapar on Texaco.