Petrobras, pursuant to the material facts of 11/17/2016 and 1/31/2017, concerning the sale process of Liquigás Distribuidora S.A., a wholly-owned Petrobras subsidiary, to Companhia Ultragaz S.A., a subsidiary of Ultrapar Participações S.A., informs that the General Superintendence of the Administrative Council for Economic Defense (CADE) published a dispatch today declaring the Act of Concentration to be complex and ordering the execution of a few diligences.

The declaration of complexity is procedural act defined in article 56 of Law No. 12,529/2011 and in article 160 of CADE Internal Rules, which enables the Superintendence to order the execution of complementary instruction, specifying the diligences to be carried out, and furthermore granting the competition authority the ability to request the extension of the deadline by up to 90 days, thus altering the deadline for transaction analysis from 240 to 330 days.

The main diligences ordered were: (i) await for miscellaneous information already requested that will ground the analysis by the General Superintendence and by the CADE’s Department of Economic Studies (DEE) in the preparation of a quantitative study on the impacts to competition arising from the transaction; (ii) request data from cylinder manufacturers; (iii) request data from competitors and clients on LPG as the propellant in aerosols; (iv) request the parties to demonstrate the measures to be adopted so the alleged economic efficiencies generated by the transaction are shared with consumers.

Petrobras will continue to collaborate with CADE in order to obtain the approval of the transaction within the legal deadline, and keep the market informed of any relevant decision.

In addition to the approval by CADE, the completion of the transaction is still subject to compliance with other usual preceding conditions.