Sector News

Argentina’s YPF returns to PP market with two acquisitions, including stake in LyondellBasell unit

August 19, 2015
Energy & Chemical Value Chain
LyondellBasell Industries says it has accepted Yacimientos Petrolíferos Fiscales (YPF; Buenos Aires) and Grupo Inversor Petroquímica’s (GIP; Madrid) joint offer to purchase LyondellBasell’s wholly owned polypropylene (PP) subsidiary Petroken Petroquímica Ensenada (Buenos Aires). YPF and GIP will each hold a 50% stake in Petroken. YPF and GIP, meanwhile, are acquiring equal parts of a 92% stake in Petroquímica Cuyo (Buenos Aires), another PP producer. The acquisitions mark YPF’s return to a market it had been active in until 2004–05.
 
The Petroken transaction is valued at $145 million on a debt- and cash-free basis. LyondellBasell expects proceeds of $162 million based on working capital estimates as of 30 June. The sale is to close expected in late 2015, following approval from Brazil’s antitrust body CADE (Brasilia), LyondellBasell says.
 
Petroken operates a 180,000-m.t./year PP plant at Ensenada, Argentina, near Buenos Aires. The company has long-term agreements to receive feedstock from suppliers including YPF and Shell’s Capsa (Buenos Aires) subsidiary, according to Petroken’s Web site. 
 
Petroquímica Cuyo operates a 130,000-m.t./year PP line at Luján de Cuyo, in western Argentina. The plant sources its feedstock mainly from YPF’s Luján de Cuyo refinery. 
 
“This acquisition is in line with our strategy to continue building an integrated business … securing the value-added of our production. The petrochemical sector has large potential in Argentina and is part of YPF’s growth strategy,” says Miguel Galuccio, president and CEO of YPF.
 
YPF says that it will pay $122 million in total for its stakes in the two PP companies.
 
By Francinia Protti-Alvarez
 

comments closed

Related News

April 26, 2024

CIECH Group will change its name to Qemetica in June

Energy & Chemical Value Chain

We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.

April 26, 2024

Neste annouces first success in processing pyrolysis oil from discarded tires

Energy & Chemical Value Chain

In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.

April 26, 2024

Sika opens synthetic fibers production facility in Peru

Energy & Chemical Value Chain

Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.

How can we help you?

We're easy to reach