A judge clears path for resumption of merger talks between Braskem and Quattor

15-Jan-10

A Rio de Janeiro judge has removed an injunction prohibiting negotiations between two Brazilian petrochemicals majors Braskem and Quattor. A possible merger between the two will result in further consolidation of the Brazilian petrochemicals industry, leading to virtual monopoly in Brazil, as Quattor is feared to disappear as a company in any merger with much larger Braskem. Civil judge Roberto Ayoub, in his decision wrote, “There is no prospect of irreparable damage from the negotiations, which depend, not on the courts, but on regulatory authorities."