Brazil Braskem shelves plans to sell distribution business

25 November 2013 23:44 Source:ICIS News

MEDELLIN, Colombia (ICIS)--Brazilian producer Braskem has shelved plans to sell its chemical and petrochemical distribution business quantiQ, a spokesperson for the company said on Monday.

Braskem announced in November last year that it intended to sell quantiQ – Brazil’s largest chemical distributor – by the end of 2012.

Media reports that surfaced around the same time suggested that the sale could fetch $500m (€370m) and that the distributor had three potential buyers standing by.

“The sale of assets that are considered non-strategic is linked to investments in Braskem’s core business,” said a spokeswoman for Braskem. “The company continues to evaluate opportunities, but the sale of quantiQ, at this time, is not being considered.”

Meanwhile, Braskem has confirmed that it remains interested in acquiring polyvinyl chloride (PVC) assets in Brazil and Argentina from Belgium-headquartered chemicals producer Solvay.

Solvay announced in February it is in discussions to sell its 70% stake in Latin American PVC producer Solvay Indupa, with the Brazilian company confirming its interest in a statement in September.

“We are still engaged in the process,” said Braskem president Carlos Fadigas in a conference call with investors earlier this month.

($1 = €0.74)

By Simon West