Brazil Ultrapar enters exclusive talks to sell Oxiteno to Indorama

HOUSTON (ICIS)–Ultrapar has entered exclusive talks with Indorama to sell its surfactants business, Oxiteno, the Brazilian conglomerate said on Wednesday.

The two companies are still discussing financial terms, and they have not signed any contracts or sales agreements, Ultrapar said.

Indorama did not immediately respond to a request for comment.

Oxiteno is the sole producer of ethylene oxide (EO) in Brazil. The company also makes ethylene glycol (EG) and surfactants. It has plants in the US, Mexico and Brazil.

The possible sale of Oxiteno comes as Ultrapar is seeking to build on its existing fuel distribution businesses.

Its fuel retailing business, Ipiranga, is pursuing the acquisition of Petrobras’ Alberto Pasqualini Refinery (REFAP) in the southern state of Rio Grande do Sul. It would be Ipiranga’s sole refinery. REFAP can process 201,000 bbl/day of crude.

Ultrapar also owns the fuel distributor Ultragaz, liquid bulk storage firm Ultracargo and drugstore chain Extrafarma. Ultrapar is in talks to sell Extrafarma.

Ultrapar has since signed an agreement to sell Extrafarma to Pague Menos for reais (R) 700m ($139m).

Oxiteno is among three major Brazilian chemical companies that could be sold.

($1 = R5.03)

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Thumbnail image shows bubbles, which often form in solutions containing surfactants. Image by Shutterstock.