Chevron to Sell Fuels Marketing Business in Brazil to a Subsidiary of Ultrapar Participações
SAN RAMON, Calif.- Chevron Corporation (NYSE: CVX) today announced that two of its subsidiaries have entered into an agreement with a subsidiary of Ultrapar Participações S.A. (Ultrapar) to sell Chevron’s fuels marketing business in Brazil for approximately $730 million plus a working capital adjustment. The final amount will vary based on exchange rate fluctuations and the actual working capital sold.
Under the terms of the agreement, Ultrapar will acquire a network of approximately 2,000 service stations operating under the Texaco brand, an equity interest in associated terminal operations, and Chevron’s commercial and industrial fuels business. Other terms of the agreement were not disclosed.
“The proposed sale of our retail fuels marketing operations in Brazil is consistent with our ongoing effort to concentrate downstream resources and capital on strategic global assets,” said Mike Wirth, executive vice president, Global Downstream, Chevron. “By restructuring our worldwide portfolio, we intend to reduce capital employed, deliver stronger returns and achieve more profitable growth.”
“Brazil remains an excellent country in which to do business. We plan to continue growing our presence there by focusing on our lubricants and upstream operations,” said Shariq Yosufzai, president, Global Marketing, Chevron.
Texaco is the fourth-ranked fuel brand in Brazil by sales volumes. Under the Texaco brand, Chevron sells an average of 120,000 barrels per day of fuel in Brazil.
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