Liquigás sale process – General Superintendence of the Administrative Council for Economic Defense (CADE) Opinion

Rio de Janeiro, August 28, 2017 – Petróleo Brasileiro S.A. – Petrobras, pursuant to the press release of 06/30/2017, informs about the progress of the process analysis by the General Superintendence (“GS”) of the Administrative Council for Economic Defense (”CADE”), regarding the sale of Liquigás Distribuidora S.A., a wholly-owned Petrobras subsidiary, to Companhia Ultragaz S.A., a subsidiary of Ultrapar Participações S.A.

On this date, GS ended the analysis phase of the transaction and the case will be submitted to the Court of CADE in the next few days, as stated by the procedure established in the Brazilian Law 12.529/2011, art. 57, II.

According to the Technical Opinion issued by the GS there were competitive concerns identified. For this reason, the GS submitted its recommendation to disapprove the transaction to the said Court, which will be responsible for evaluating the case and identifying possible conditions to avoid such concerns. Therefore, the opinion published by GS is not binding and the Court will take the final decision on this case.

Petrobras and Ultragaz believe that there are initiatives capable of solving the competition concerns raised by the GS and will continue to collaborate with CADE in order to approve this transaction.

Petrobras will keep the market informed of any relevant decision.

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