01 February 2010 17:16 [Source: ICIS news]
(adds updates throughout)
HOUSTON (ICIS news)--Petrochemicals maker Braskem said on Monday its takeover of Sunoco Chemicals’ polypropylene (PP) operations is the first of a number of acquisitions the Brazilian company plans in the US market.
Sunoco Chemicals has a combined 950,000 tonnes/year of PP capacity with plants in ?xml:namespace>
“We began mulling our expansion strategy in the
Fadigas said the Brazilian company will pay cash for the Sunoco acquisition.
Braskem’s net debt ratio versus earnings before interest, taxes, depreciation and amortisation (EBITDA) will increase to 3.30 from 3.24 as a result of the operation, the executive said, downplaying its impact on Braskem’s debt structure.
Fadigas said Braskem plans to use Sunoco as the gateway for its planned investments in the
On 22 January, Braskem consolidated the petrochemical arms of Brazil’s Petrobras, Odebrecht and Quattor to make it the largest plastic resins producer in the
The acquisition of Sunoco's PP business, which ICIS news reported last week as a likely deal, was subject to regulatory approval and customary closing conditions, and was expected to close on or before 31 March.
Moody’s Investors Service said the Sunoco acquisition would not affect its rating and stable outlook of Braskem.
“In Moody's view, the relatively small amount involved combined with the additional cash flow from the acquired assets will result in immaterial impact on Braskem's debt protection metrics,” Moody’s said.
($1 = €0.72)
Additional reporting by Brian Ford
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