Ultrapar Participacoes S.A.NYSE
Mon, Jun. 13, 12:58 PM
- Ultrapar (UGP +3.7%), Brazil's second-biggest fuel distributor, jumps ~4% after agreeing to acquire smaller peer Alesat Combustíveis for 2.17B reais ($635M) in a move that makes it more competitive with Petrobras' (PBR -2.8%) distribution unit.
- UPR’s Ipiranga fuel distribution unit already had more than 7,200 gas stations across Brazil, and the combined company adds another 2K stations to bring its market share near 18%, approaching PBR's market leading BR Distribuidora's nearly 20% market share from 7,500 service stations.
- PBR has said it wants to sell at least 25% of its distribution unit to a strategic partner as part of its plan to sell $15B of assets to pay down debt.