Ultrapar Hires BTG to Manage Ipiranga Stake Sale; Chevron Shows Interest

Brazilian conglomerate Ultrapar has enlisted investment bank BTG Pactual to manage the potential sale of a stake in its fuel distributor Ipiranga, two sources familiar with the process told Reuters on Monday. Earlier, the Brazil Journal reported that oil producer Chevron was in advanced negotiations with Ultrapar to acquire a 30% stake in Ipiranga. However, the two sources told Reuters they could not confirm if Chevron was among the potential buyers. Two additional sources, who requested anonymity because the discussions are confidential, indicated that Ultrapar is looking to reduce its exposure to fuel distribution. One source stated that the company plans to reallocate capital to the logistics sector. The second person added that Ultrapar aims to maintain operational control of Ipiranga, even with a reduced equity stake, if possible. A potential deal with Chevron would continue an existing relationship between the two companies. Chevron and Ipiranga already have a joint venture in the lubricants sector, which, according to one source, makes discussions about acquiring the Ipiranga stake a “natural progression.” However, the same source cautioned that Ultrapar might be exploring options with several potential buyers. Representatives for Chevron, Ultrapar, and BTG all declined to comment on the matter.