Brazil’s Petrobras buys major chemical company

6 August 2007

Sao Paulo, Brazil, 6 Aug – Brazilian state-controlled oil company Petrobras said it has acquired a majority shareholding in Suzano Petroquimica for 2.1 billion reais.

Petrobras said Friday that with a forecast offer of 600 million reais to minority shareholders, the purchase is set to cost 2.7 billion reais.

The acquisition is part an ongoing consolidation of the Brazilian petrochemical industry, to which Petrobras is the main supplier of naphta, a gasoline-like faction of crude and a raw material for the chemical industry.

“The acquisition of these assets will increase the value of the petrochemical shareholdings of Petrobras though its contribution to consolidating the petrochemical hub in the southeast,” said the company in a statement.

With its purchase of Suzano Petroquimica, Petrobas increases its stakes in Rio Polimeros from 17 percent to 50 percent and Petroquimica Uniao from 17 percent to 24 percent.

Petrobras also gets a 20 percent stake in Petroflex though its latest deal.

Suzano Petroquimica has operated in Latin America for 30 years and is a market leader in production of polypropylene resins, in addition to being the second-largest producer of thermoplastic resins.

Rio Polimeros is a Brazilian pioneer in the manufacture of polyethylene from natural gas, while Petroflex is the largest producer of synthetic rubber in Latin America. (macauhub)