SAO PAULO, Aug. 4, 2016 /PRNewswire/ -- Ultrapar Participações S.A. (BM&FBOVESPA: UGPA3 / NYSE: UGP) ("Ultrapar") hereby announces that its subsidiary Ipiranga Produtos de Petróleo S.A. ("Ipiranga") entered into a joint venture agreement with Chevron Brasil Lubrificantes Ltda. ("Chevron") to create a new company ("JV") in the lubricants business. Under this agreement, the JV will be formed by Ipiranga's and Chevron's lubricants operations in Brazil. Ipiranga and Chevron will own 56% and 44%, respectively, of the JV's capital.
The JV will combine two highly complementary and experienced companies in this business, aiming at value creation by sharing best practices and strengthening its position in the competitive Brazilian lubricants market. The combination of the two businesses increases the capillarity of the sales channels in Brazil through Ipiranga's network of 7,241 service stations, 1,473 of which with Jet Oil (Ipiranga's specialized car care services), as well as through Ipiranga's and Chevron's lubricant distributors network. The JV will market lubricants, greases, additives and coolants under Ipiranga and Chevron brands.
In 2015, Ipiranga sold 206 thousand cubic meters of lubricants, greases and fluids and recorded revenues of R$ 1.1 billion. In the same period, Chevron sold 145 thousand cubic meters of lubricants, greases and coolants in Brazil and recorded estimated revenues of R$ 0.9 billion.
This transaction is subject to approval of the competent regulatory authorities, notably the Brazilian antitrust regulation agency CADE ("Conselho Administrativo de Defesa Econômica").
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SOURCE Ultrapar Participacoes S.A.