22 January 2010 17:52 [Source: ICIS news]
(adds updates throughout)
HOUSTON (ICIS news)--Braskem’s consolidation of the petrochemical arms of Brazil’s Petrobras, Odebrecht and Quattor will make it the largest plastic resins producer in the Americas and is part of a long-term plan to become one of the world’s five largest producers, the Brazilian company said on Friday.
“The acquisition is creating a world-scale player,” chief executive Bernardo Gradin said on a conference call with analysts. “Braskem positions itself as the biggest resin producer in the ?xml:namespace>
The merger of Braskem and rival Quattor will create
After the deal is completed, Braskem will have a capacity of 3.04m tonnes/year of polyethylene (PE), 1.97m tonnes/year of polypropylene (PP) and 510,000 tonnes/year of polyvinyl chloride (PVC), the company said.
Going forward, Braskem cited “aggressive growth plans” in
In the transaction, Brazilian holding company Unipar will receive reais (R) 647.3m ($358m) for its stake in Quattor while Braskem will also acquire Unipar Commercial for R 27.7m and pay Unipar R 25m in cash for its 33.3% stake in Polibutenos.
State-controlled oil company Petrobras, and conglomerate Odebrecht said they would consolidate their direct and indirect interests in petrochemicals and create a holding company for Braskem, BRK Investimentos Petroquimicos SA (BRK). They plan to inject capital into BRK and a capital increase for Braskem.
The merger is going ahead after legal objections to the deal were overcome.
Quattor is currently jointly owned by Unipar and Petrobras, and operates 10 plants in the Brazilian states of
The deal, which effectively nationalises
Talks of a Braskem-Quattor alliance were first reported last August.
Additional reporting by Nigel Davis
($1 = R1.81)
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