Merger? No, they already have something going on with their device being tested by Petrobras.
It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 http://en.wikipedia.org/wiki/Petrobras
In short, Petrobras has been paying IREC while they test their device and has first rights to buy it too. Interesting stuff in the 10K filed last October and on their website.