Ultrapar Participacoes S.A. (UGP) Bolsters Infrastructure Play with Strategic Hidrovias Acquisition

We recently compiled a list of the 10 Best Low Cost Stocks To Buy Under $50. Ultrapar Participações S.A. stands seventh on our list.

Ultrapar Participações S.A. (NYSE:UGP), a leading Brazilian conglomerate in fuel, gas distribution, and logistics, is expanding its footprint in integrated infrastructure through the recent acquisition of a controlling 50.15% stake in Hidrovias do Brasil S.A. Announced on May 8, 2025, this strategic move strengthens the business’s presence in Brazil’s critical agribusiness and transportation sectors by adding river-based logistics to its portfolio. Though near-term EBITDA contribution and synergies are expected to be modest, the acquisition marks a pivotal step in the company’s transition into a diversified energy and logistics platform.

S&P Global noted that while the acquisition may temporarily increase Ultrapar Participações S.A. (NYSE:UGP)’s leverage, the company’s solid operational performance is likely to support gradual financial improvement as integration advances. The corporation continues to invest heavily across its subsidiaries: Ipiranga is enhancing its digital and service infrastructure, Ultragaz is growing its bulk gas segment, and Ultracargo is undergoing major terminal expansions in Santos, Palmeirante, Rondonópolis, Itaqui, and Suape, with completion expected by 2026.

These initiatives reflect a broader strategy to modernize and expand Ultrapar Participações S.A. (NYSE:UGP)’s role in Brazil’s infrastructure ecosystem. Supported by stable cash flows, the corporation is also pursuing shareholder-friendly actions such as dividends and share buybacks. Market sentiment has responded positively, Scotiabank recently upgraded the stock to “sector outperform” following the Hidrovias deal.

While we acknowledge the potential of UGP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.