By Brazil Stock Guide – Brazil’s antitrust tribunal, the Administrative Council for Economic Defense (Cade), has unanimously approved a joint venture between Ultragaz, a unit of Ultrapar Participações S.A. (NYSE: UGP; B3: UGPA3), and Supergasbras, controlled by Dutch-based SHV Energy, to build a liquefied petroleum gas (LPG) terminal in Pecém, Ceará. The news was first reported by InfoMoney.
The transaction, structured through a special purpose entity (SPE), involves an investment of about 1 billion reais ($200 million). Cade’s investigative unit had already recommended approval without restrictions in 2023, but rival Grupo Edson Queiroz called for a deeper review, citing potential harm to competition.
Cade’s president and case rapporteur, Gustavo Augusto de Lima, acknowledged competitive risks but stressed that the parties themselves proposed remedies. “The applicants do not deny the risks and agree to mitigate them,” Lima said. He emphasized that the clearance remains conditional on full compliance with the commitments.
The remedies include open third-party access to the terminal, governance separation between the SPE and its shareholders, technical capacity for handling refrigerated LPG from long-haul imports and coastal shipping, and interconnection with existing LPG transport infrastructure.
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