Suzano Petroquímica: Petrobras’ New Acquisition

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Researched by Industrial Info Resources (Sugar Land, Texas) -- Petrobras (NYSE:PBR) has acquired all shares of Suzano Petroquímica S.A. (São Paulo, Brazil), one of Latina America’s polypropylene production leaders, and Brazil’s second largest thermoplastic resins manufacturer. The acquisition is part of Petrobras’ Strategic Plan to invest in projects within the Brazilian and Southern Cone petrochemical sector in pursuit of operating more integrally in every area. The operation will be supervised by Brazilian Authorities in charge of safeguarding competition, the CADE, Administrative Economic Defense Council; the SDE, Economic Right Department; and the SEAE, Economic Follow-up Department.

Suzano Petroquímica has been in the market for the last 30 years and its industrial park consists of three polypropylene resin production units located in the municipalities of Mauá (SP), Duque de Caxias (RJ), and Camaçari (BA). Together these produce 685,000 tons of the product per year. Suzano also participates with a 33.3% stake in Rio Polímeros S.A., which produces 540,000 tons of polyethylene a year, in Petroflex’s 422,000 tons of synthetic rubber per year, and a 6.8% of joint stake of in Petroquímica União's raw material central which already has a 17.4% indirect participation from Petrobras.

Petrobras already owns a 16.7% out of Rio Polímeros S.A.'s total and a 20.1% at Petroflex, Latin America's biggest synthetic rubber producer and after acquiring Suzano Petroquímica it will owns a 99.9% share participation in ordinary shares (97.3 million ordinary shares) and a 58.2% participation in the preferred shares (75.2 million) which represents a 76.1% of Suzano’s total capital. Industrial sectors, which are vital for Brazil’s economic growth, are being reorganized and consolidated by Suzano’s acquisition. Furthermore, this new asset will strengthen Petrobras’ participation in the petrochemical arena since it contributes to the consolidation of the Southeastern Petrochemical Pole.

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