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

September 25, 2022

France and Sweden both launch ‘first of a kind’ hydrogen facilities

Chemical Value Chain

France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).

September 25, 2022

NextChem announces €194-million grant for waste-to-hydrogen project in Rome

Chemical Value Chain

The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.

September 25, 2022

The problem with hydrogen

Chemical Value Chain

At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?