Lanxess to pay €198m for 70% of Brazil’s Petroflex

13 December 2007 16:11  [Source: ICIS news]

TORONTO (ICIS news)--Lanxess will spend €198m (€291m) for a 70% stake in Brazil’s Petroflex to boost its global rubber business, the German chemicals maker said on Thursday.

 

Lanxess would buy the stake from Petroflex shareholders Braskem and Unipar, it said.

 

Petroflex was among the world’s large-scale producers of synthetic rubber, Lanxess said.

 

“Petroflex ideally complements our product portfolio and strengthens our position in one of the world’s most important growth markets,” said Lanxess CEO Axel Heitmann.

 

“In this way we are significantly expanding our position in Latin America as a whole.”

 

Lanxess expected the market for rubber in Latin America to grow quickly in coming years as major global tyre makers were spending about €1bn to increase their production capacities in the region, Heitmann added.

 

Petroflex had some 1,300 employees last year, generating sales of about €500m, Lanxess said.

 

About one third of Petroflex’s output of more than 400,000 tonnes/year went into export markets, it added.

 

The transaction was subject to regulatory approvals and customary closing conditions, Lanxess said, but it did not say when it expected the deal to close.

 

($1 = €0.68)

By: Stefan Baumgarten
+1 713 525 2653

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