Braskem S.A. cancelled the acquisition of 29.41% stake in Solvay Indupa S.A.I.C..
November 12, 2014 at 12:00 am EST
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Braskem S.A. (BOVESPA:BRKM5) agreed to acquire 29.41% stake in Solvay Indupa S.A.I.C. (BASE:INDU) for approximately ARS 160 million on December 17, 2013. Braskem will acquire the shares for ARS 1.35 per share. The mandatory tender offer was launched due to a related transaction where Braskem S.A. (BOVESPA:BRKM5) signed a binding agreement to acquire 70.6% stake in Solvay Indupa S.A.I.C. (BASE:INDU) from Solvay Argentina S.A. Post acquisition, Solvay Indupa S.A.I.C. (BASE:INDU) will be delisted from the Buenos Aires Stock Exchange. The deal was unanimously approved by the Board of Directors of Braskem. The deal is subject to approval by Brazil's antitrust agency CADE (Conselho Administrativo de Defesa Econômica).
The bid price was revised to ARS 2.4 per share. The Board of Directors of Braskem meeting was held on June 6, 2014, wherein presentations were related to the acquisition. As on June 24, 2014, Braskem has been informed of the report by the General Superintendence (SG) of Brazil's antitrust agency Conselho Administrativo de Defesa Econômica (CADE). The SG opposed the transaction given its understanding that it is potentially anticompetitive. As of August 6, 2014, the transaction has been approved by the Board of Directors of Braskem. On November 12, 2014, Brazilian competition authority (CADE) rejected the transaction.
Braskem S.A. (BOVESPA:BRKM5) cancelled the acquisition of 29.41% stake in Solvay Indupa S.A.I.C. (BASE:INDU) on November 12, 2014. The General Superintendence of Administrative Council for Economic Defense (CADE) has rejected the acquisition due to potential anti-competitive concerns.
Braskem SA is a Brazil-based integrated petrochemical company for the first and second generation of thermoplastic resins. The Company's activities are divided into three operational segments: Brazil; the United States and Europe; and Mexico. The Brazil segment is focused on the production of polyethylene (PE), polypropylene (PP) and polyvinylchloride (PVC) resins, in addition to basic chemical inputs such as ethylene, propylene, butadiene, benzene, toluene, chlorine, soda, and solvents, among others. The United States and Europe segment is responsible for the production of polypropylene in units in the United States and Germany. The Mexico segment consists of the operation of ethylene cracker and polyethylene units located in Mexico.