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
 

comments closed

Related News

May 21, 2022

Sika opens new manufacturing plant in Bolivia 

Chemical Value Chain

Sika AG (Baar, Switzerland) has opened a new plant in Santa Cruz de la Sierra, thus doubling its production capacity for mortar and concrete admixtures in Bolivia. With this new facility in one of the country’s main industrial agglomerations, Sika is positioning itself for continued growth in the dynamic Bolivian construction market.

May 21, 2022

Chevron increases renewable fuel market share with REG acquisition

Chemical Value Chain

Chevron Corporation (NYSE: CVX) and Renewable Energy Group, Inc. (NASDAQ: REGI) (REG) announced on Monday a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.

May 21, 2022

Lotte Chemical to invest $8 bn on hydrogen energy, battery materials by 2030

Chemical Value Chain

Lotte Chemical Corp. will invest 10 trillion won ($8 billion) on hydrogen and battery materials through 2030 to achieve annual revenue of 50 trillion won and carbon neutrality. The Korean chemical producer on Thursday unveiled its new corporate vision outlining key corporate strategies with focus on growth through hydrogen energy and battery materials businesses.