This excerpt taken from the PBR 6-K filed May 15, 2008.
1. OBJECTIVES AND COSTS.
1.1. Objectives. The Integration into Braskem is in line with the objective of boosting the capacity of the entire Brazilian petrochemical and plastics production chain, thus permitting gains in scale and synergies, enhanced investment capacity in research and development, and the strengthening of the plastics industry. As a result, Braskem and Petrobras take a critical step towards consolidating the Brazilian petrochemical sector and Braskem accelerates its strategy of becoming among the top ten global petrochemical industries.
The Integration is also part of the strategy of Braskem and Petrobras to reorganize and consolidate the petrochemical sector, initiated with the acquisition of the Ipiranga Group. Once this operation has been implemented, Petrobras will have restructured its investment portfolio in Brazilian petrochemicals, in line with the goals set forth in its Strategic Plan, and at the same time becoming a key minority partner in Braskem, through its wholly owned subsidiary, with a greater participation in the decision-making process.
1.2. Costs. The total cost of the Incorporation of Shares shall be approximately R$ 4 million, including expenses with publications, preparation of appraisal reports and economic-financial appraisals, and the fees of auditors, appraisers, consultants and Brazilian and foreign attorneys.