This excerpt taken from the PBR 6-K filed Mar 5, 2008.
1. Purpose and Benefits of the Merger
The merger of UPB into PETROBRAS (the Merger) is related to the acquisition of the petrochemical assets of Grupo Ipiranga, pursuant to the terms of the Material Fact disclosed on March 19, 2007, since UPB was the company through which Ultrapar, in compliance with the Investment Agreement entered into on March 18, 2007, transferred to PETROBRAS 40% of the capital stock of Ipiranga Química S.A. (IQ).
The merger will represent the alignment of the interests of the shareholders of the companies involved, providing a simplification of the corporate structure created for the transfer of the portion of the petrochemical assets acquired from Grupo Ipiranga, in addition to promoting the creation of value for PETROBRAS, through the capture of additional synergies.