The US$1.1 bln acquisition of petrochemicals company Suzano Petroquimica by Petrobras is a major step toward consolidation of the sector in Latin America's largest nation. This is a step forward to face global competition, as only large petrochemicals plants will be able to produce cheaply enough to compete on a global level.
Petrobras will acquire 76% stake in Suzano within 60 to 90 days.
Petrobras is in talks with Brazilian petrochemicals group Uniao das Industrias Petroquimicas SA, or Unipar, on both the Suzano purchase and the formation of a new petrochemicals firm in Brazil's southeast. Petroleo Brasileiro SA, Brazil's state-run oil company, aims to team up with other companies to form a large new petrochemical company in southeast Brazil.