Approval from Brazilian antitrust regulators likely for Braskem’s acquisition of Quattor

12-Feb-10

Latin America’s biggest petrochemicals producer Braskem SA is likely to get approval from Brazilian antitrust regulators to buy Quattor Petroquimica SA. Brazil’s antitrust agency, known as Cade, is likely to approve the deal because both companies compete in a global market, with little effect on domestic prices to consumers. The deal allows Braskem to gain strength to compete with the big players in the global markets. The antitrust agency, is still studying the merger. There is no estimate of announcement of a final decision. Braskem is controlled by Odebrecht SA and state-controlled Petroleo Brasileiro SA, and agreed to buy Quattor for 870 million reais (US$471 mln). Braskem will surpass Dow Chemical Co. in plastics production after the Quattor acquisition and is in talks with U.S. companies as it eyes more acquisitions.