EduBourseActualitésCADE approves the restructuring of the petrochemical sector

CADE approves the restructuring of the petrochemical sector

Pierre Perrin-Monlouis Dernière mise à jour: 20 octobre 2021

This Wednesday (07/09), the Administrative Council for Economic Defense (CADE) approved the restructuring operations carried out for the Southern and Southeastern petrochemical poles. Petrobras had a relevant role in both operations, which remodeled the Brazilian petrochemical industry and conferred it not only with a more competitive profile, but global scale.

The operation was built in two stages for the Southern petrochemical pole. In the first, Braskem S.A. and Petrobras acquired – at the proportion of 60% and 40%, respectively – the petrochemical assets that belonged to the Ipiranga group and consisted of Ipiranga Química, a polyethylene and polypropylene producer; Ipiranga Petroquímica, a paint and solvent distributor; and of Ipiranga’s stakes in Copesul, consolidating Braskem’s control over this petrochemical plant.

Braskem and Petrobras then signed an investment agreement to increase Braskem’s joint stock by incorporating the share participation Petrobras held in Copesul, Ipiranga Petroquímica, Ipiranga Química, Petroquímica Paulínia S.A., a polypropylene producer located in Southeastern Brazil, and Triunfo, a polyethylene and EVA producer. Braskem’s incorporation of up to 100% of Triunfo’s joint stock is expected to be defined late this year. After the operation is complete, Petrobras’ participation in Braskem’s joint stock will be 30%.

The Southeastern pole operation was also built in two stages. Firstly, Petrobras acquired share control over Suzano Petroquímica, a polypropylene producer. It then negotiated, with Unipar, the incorporation of a Petrochemical Company – already called Quattor –, the shares of which are held by Unipar and Petrobras in the proportion of, respectively, 60% and 40%. Unipar and Petrobras will allocate certain petrochemical assets held in the Southeast to Quattor, which will then take over the activities of Unipar’s Chemical Division and control the PQU and Ripol petrochemical plants, in addition to second generation companies Suzano and Polietilenos União.

The main business lines of the two companies – Braskem and Quattor – are polypropylene and polyethylene production to supply Brazil and the world. They are controlled, respectively, by Odebrecht/ Norquisa and Unipar.

Petrobras believes that the operations approved by the CADE will allow the formation of global scale, highly competitive petrochemical companies and that this will put the spotlight on the Brazilian petrochemical industry in the international scenario, which is increasingly marked by intense competition.

Pierre Perrin-Monlouis
Pierre Perrin-Monlouis
Fondateur de Rente et Patrimoine (cabinet de gestion de patrimoine), Pierre Perrin-Monlouis est un analyste et trader pour compte propre. Il vous fait profiter de son expérience en trading grâce à ses analyses financières et décrypte pour vous les actualités des marchés. Son approche globale des marchés combine à la fois l'analyse technique et l'analyse fondamentale sur l'ensemble des marchés : crypto, forex, actions et matières premières.