Alpek expected to offer US$700 mln for Petrobras' petrochem assets

01-Aug-16

Mexico's Alpek SA de CV is expected to offer up to US$700 mln for Brazilian state-run oil company Petroleo Brasileiro SA's petrochemicals units in the northeastern state of Pernambuco, as per a source in Reuters. The two companies will negotiate the deal for 60 days.

Petrobras' petrochemical units have accumulated 5.6 billion reais (US$1.7 biln) in losses over the last two years, which included impairment charges related to the largest-ever corruption probe in Brazil. The plants in Pernambuco produce PTA, raw material for PET resin, and polyester fiber. The sale will reduce Petrobras' debt, as well as the need to inject more cash into the plants, which have not been profitable yet, the source added.