Mexichem to buy chemical company for $40m

27 February 2008 22:45  [Source: ICIS news]

HOUSTON (ICIS news)--Mexican polyvinyl chloride (PVC) producer Mexichem will complete the $40m (€26.8m) acquisition of an unnamed Mexican chemical company in the next two weeks, a source close to the company said on Wednesday.

The source did not identify the company because the deal was pending final approval, but said it was not a PVC producer.

The source also confirmed that Mexichem was planning to buy two other major companies in the second quarter for a combined total of about $200m.

Also this week, Mexichem will complete the purchase of Prodesal CO, a small producer that operates a single plant in Cali, Colombia, with a caustic-soda production capacity of 30,000 tonnes/year, the source said.

Mexichem’s growth strategy has sent the company on a buying spree of chemical producers throughout Latin America.

In January, Mexichem announced the acquisition of Argentine irrigation firm Dripsa and the Brazilian pipe-maker DVG Industria e Comercio de Plasticos.

In 2007, Mexichem's acquisitions included pipe-maker Amanco and the Colombian PVC producer Petco.

($1.00 = €0.67)

For more on PVC visit ICIS chemical intelligence

By: Greg Holt
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