30 November 2007 14:23 [Source: ICIS news]
TORONTO (ICIS news)--Brazil’s Braskem is taking over and integrating chemical assets from state oil major Petrobras in a further large-scale consolidation of the country's petrochemicals industry, it said on Friday.
As part a big stock deal - resulting in the issuance of 103.4m new Braskem shares - state oil major Petrobras and its petrochemicals arm, Petroquisa, would increase their combined stake in Braskem to 25%, from 6.8%, the Brazilian petrochemicals major said.
Braskem would take over and integrate into its operations Petrobras and Petroquisa stakes in petrochemicals makers Companhia Petroquimica do Sul (Copesul); Ipiranga Quimica and Ipiranga Petroquimica; Petroquimica Paulinia; and Petroquimica Triunfo, Braskem said.
Braskem CEO Jose Carlos Grubisich said: "This decisive step in the consolidation of Brazil's petrochemical sector positions Braskem as a major player in the global petrochemical industry, and provides the company with strong cash flow generation that will enable it to accelerate expansion and internationalisation projects."
Braskem expected to complete the transaction within six months, it said.
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