Brazil's Braskem SA on Tuesday reached a deal to buy plastic maker Solvay Indupa for $290 million. Solvay Indupa is the Argentine-Brazilian unit of Belgium's Solvay SA. Braskem is Latin America's largest petrochemical company.
According to Reuters, a securities filing confirmed its earlier report on Tuesday that Braskem would acquire Solvay Indupa. Solvay Indupa makes PVC resins and caustic soda in Brazil's Sao Paulo state and Argentina's Buenos Aires province.
The deal represents Braskem's first move into production in Argentina. Braskem is also building a $4.5 billion plant in Mexico and studying options for investment in the United States, the report said.
Braskem chief executive Carlos Fadigas told Reuters that his company would acquire Solvay Indupa mainly through assuming its debts plus a small cash disbursement.
In the contract signed on Tuesday, Braskem agreed to buy 70.59% of Solvay Indupa from its controlling owner. It will also offer to buy up the 29.41% stake in the company floated on the Buenos Aires stock exchange, the report said.
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