Petrobras announced that its board of directors has approved the proposal of establishing with the Industrial Plant Development and Modernization Company (IPDMC), according to a press release.

The company added that this incorporation aims at optimizing the corporate structure of Petrobras. It elaborated that no shares will be issued or increased in the capital as it will be a wholly-owned subsidiary. The shares of IPDMC will be extinguished, with the necessary accounting entries being made to Petrobras.

According to the statement, the operation is still waiting for the approval by Petrobras ‘General Shareholders’ Meeting, to be convened in due course.