Braskem, the largest polymer producer in the Americas,
announced an agreement with Grupo Solvay to acquire 70.59% of
the total and voting capital of Solvay Indupa, officials said
Braskem says the acquisition confirms its commitment to
develop the petrochemical
industries in Brazil and South America by strengthening the
vinyls chain and by its decision to continue investing to
support the growth of its clients.
It also establishes an industrial base in Argentina, a market
in which Braskem already has maintained a commercial presence
for over 20 years.
The transaction price is $290 million. The consummation of
the sales agreement will depend on prior analysis and
approval by Brazil's antitrust agency CADE (Conselho
Administrativo de Defesa Econômica).
Following the transaction's conclusion, Braskem will launch a
public tender offer to non-controlling shareholders for the
purchase of shares in Solvay Indupa on the Buenos Aires Stock
Solvay Indupa produces PVC and caustic soda and owns two
integrated industrial facilities
in Brazil and Argentina
that enjoy privileged geographic positions close to South
America's two major consumer markets.
Created in 1948, Solvay Indupa has annual production capacity
of 540,000 tpy of PVC and 350,000 tpy of caustic soda. Once
the acquisition is finalized, Braskem will increase its
annual production capacity to 1.25 million tons of PVC and
890,000 tons of caustic soda.
"Vinyls is a strategic market for our company. Braskem
recently invested around R$1 billion in a PVC plant in the
state of Alagoas, which was inaugurated in 2012, in order to
meet the strong growth in demand for this resin associated
with the growth in Brazil's infrastructure sector," said
Carlos Fadigas, CEO of Braskem.