Sector News

Brazil regulator vetoes Braskem purchase of Solvay Indupa

November 13, 2014
Chemical Value Chain
Brazil’s anti-trust regulatory body, the Administrative Council for Economic Defense (CADE), has vetoed Braskem SA’s purchase of Solvay Indupa SAIC.
 
CADE said the two companies are the chief competitors in South America’s PVC market.
 
The decision suspends a $200 million deal that was announced in December 2013, in which Braskem, the largest petrochemicals company in the Americas, would have acquired the controlling 70.59 percent capital stake of Brussels, Belgium-based Solvay SA’s South American subsidiary. The deal would have made Braskem the top PVC producer in the Americas and the lone producer in Brazil.
 
CADE said the solutions Braskem offered to help balance the market were “behavioral remedies” that were “too fragile and weak,” according to board adviser Gilvandro Araujo. Those solutions were not revealed publicly, due to confidentiality clauses.
 
Buenos Aires-based Solvay Indupa has two plants producing PVC resin for pipe and fitting production in Santo Andre, Brazil, and Bahia Blanca, Argentina, with a combined annual production capacity of more than 1 billion pounds.
 
The companies can file a new proposal that includes the sale of assets, CADE President Vinicius Marques de Carvalho said. He said Braskem should only buy one plant from Solvay.
 
In a corporate statement on Wednesday, São Paulo-based Braskem said the CADE decision is harmful to the Brazilian plastics industry, and that the PVC market should be considered an international one by Brazil’s anti-trust regulator. Braskem said it will evaluate its options following the decision.
 
By Bob Moser
 

Related News

April 17, 2021

Veolia agrees deal for Suez, merging world’s largest water firms

Chemical Value Chain

VEOLIA has agreed a deal to buy its rival Suez, ending a fraught takeover battle that merges the world’s two largest water and wastewater companies.

April 17, 2021

Borealis begins feasibility study for new chemical-recycling plant in Sweden 

Chemical Value Chain

Borealis Group AG has commenced a new project to secure an increased supply of chemically recycled feedstock for the production of more circular base chemicals and polyolefin-based products.

April 17, 2021

Novozymes joins call to the Biden Administration for significant action in the U.S. to mitigate climate change.

Chemical Value Chain

The call is part of a campaign by Ceres, a nonprofit organization transforming the economy, and the We Mean Business coalition – a global, nonprofit coalition that collaborates with progressive businesses, to bolster action on climate change towards a zero-carbon economy.

Send this to a friend