This excerpt taken from the PBR 6-K filed Sep 4, 2008.
a) Ipiranga current status and restructuring of the Petrochemical companies with Braskem
On April 18, 2007, Ultrapar (the Comissioner), having Braskem S.A. and Petróleo Brasileiro S.A. - Petrobras (through a commission agreement) as intervening parties, acquired control of companies comprising Ipiranga Group for the amount of US$2,694 (R$5,486 million).
On February 27, 2008, in fulfillment of the Investment Agreement signed on March 18, 2007, Ultrapar transferred an interest of 40% of the shares comprising the share capital of Ipiranga Química S.A. to Petrobras, which disbursed US$552. The purchase price of the petrochemical assets has been allocated US$154, net of tax to property, plant and equipment, US$194 to goodwill and the remaining US$204 referred to net assets acquired.
On May 14, 2008, Ultrapar effected the transfer of the fuel and lubricants Distribution Assets located in the North, Northeast and Central-West and the asphalt Assets received by Petrobras through a special purpose company called 17 de Maio Participações S.A (17 de Maio).
17 de Maio is a closed-capital corporation and its relevant assets are the asphalt assets, contained within Ipiranga Asfaltos - IASA, and the distribution assets held by a limited company called Alvo Distribuidora de Combustíveis Ltda. Petrobras disbursed the amount of US$619. This amount has been allocated US$52, net of tax to property, plant and equipment, US$229 to goodwill and the remaining US$338 referred to net assets acquired.
On July 24, 2008, the Administrative Board for Economic Defense (CADE) accepted Petrobras request to revise the Agreement to Preserve Reversibility of Transaction (APRO) so as to no longer impede immediate access to Alvos accounting and financial information, removing the obligatory 60-day delay to such access.
18. Acquisitions (Continued)
a) Ipiranga current status and restructuring of the Petrochemical companies with Braskem (Continued)
Petrobras has not consolidated the Northern Distribution Assets, in its financial statements as CADE is still reviewing this acquisition and the APROs agreement signed with CADE restricts the control over such assets, including obtaining formal approval for certain administrative, sales and operational decisions.
The excess of allocation made to property, plant and equipment will be amortized over their remaining useful life.