Braskem S.A. (Sao Paulo, Brazil; www.braskem.com.br) has announced the execution of an agreement with Grupo Solvay for the acquisition of 70.59% of the total and voting capital of Solvay Indupa S.A.I.C.
The transaction price is $290 million. The consummation of the sales agreement will depend on prior analysis and approval by Brazil's antitrust agency CADE (Conselho Administrativo de Defesa Econômica). Following the transaction's conclusion, Braskem will launch a public tender offer to non-controlling shareholders for the purchase of shares in Solvay Indupa on the Buenos Aires Stock Exchange.
Solvay Indupa produces polyvinylchloride (PVC) and caustic soda and owns two integrated industrial facilities in Brazil and Argentina that enjoy privileged geographic positions close to South America's two major consumer markets. Created in 1948, Solvay Indupa has production capacity of 540,000 metric tons per year (m.t./yr) of PVC and 350,000 m.t./yr of caustic soda. Once the acquisition is finalized, Braskem will increase its production capacity to 1.25 million m.t./yr of PVC and 890,000 m.t./yr of caustic soda.