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ARCO TO SELL ALL BRAZILIAN HOLDINGS TO BRAZILIAN OIL CONCERN IPIRANGA

 LOS ANGELES, Oct. 7 /PRNewswire/ -- ARCO Products Co. announced today it has agreed in principle to sell all the capital stock in its independent ARCOBrasil Participacoes e Investimentos Ltda. subsidiary -- ARCO's only wholly owned international marketing operation -- to the Brazilian oil concern Companhia Brasileira de Petroleo Ipiranga.
 The agreement is subject to the execution of a formal purchase and sale contract, which is expected to be signed later this month, and to additional corporate approvals.
 Terms of the sale are confidential, but the transaction includes 100 percent of ARCO's equity in the ARCOBrasil holding company as well as its main operating company, CAPSA (Companhia Atlantic de Petroleo), a petroleum products distributor and retailer.
 CAPSA, Brazil's fifth largest petroleum products distributor, operates approximately 2,600 franchised service stations nationwide, plus the terminal and truck distribution structure required to support the stations. The company also runs a lube oil production and storage complex, and one of Brazil's largest grease-production facilities. With some 1,600 employees and 1992 total sales of US $1.8 billion, it is the ninth largest private business in the country.
 "The decision to sell ARCOBrasil was strictly strategic," said William C. Rusnack, president of ARCO Products Co., the refining and marketing division of Los Angeles-based ARCO. "The Brazilian activities are not part of our integrated core businesses."
 Noting ARCO's long association with the Brazilian subsidiary through Atlantic Refining Company dating back to 1920, Rusnack added that the rights to use the "Atlantic" brand name in Brazil are included with the sale.
 -0- 10/7/93
 /CONTACT: Annie Reutinger, ARCO Public Affairs, 213-486-3181/


CO: ARCO Products Co. ST: California IN: OIL SU: TNM

EH-JB -- LA023 -- 9881 10/07/93 16:22 EDT
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Publication:PR Newswire
Date:Oct 7, 1993
Words:283
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