CORRECT: Brazil's Braskem To Buy Dow Chemical Unit For $323 Million
July 27 2011 - 2:27PM
Dow Jones News
Braskem SA (BRKM5.BR, BAK), Brazil's biggest petrochemical
company, said Wednesday it agreed to pay $323 million for Dow
Chemical Co.'s (DOW) polypropylene unit, making it the U.S.'s
biggest producer of the chemical used to make plastics.
Braskem's U.S. unit, Braskem America Inc., will pay the amount
in cash when the deal is completed, according to a Brazilian
regulatory filing. The polypropylene business, with two locations
in Texas and two in Germany, has the capacity to produce about 1.05
million tons of the chemical a year, Braskem said in the filing.
The Texas plant will increase Braskem's U.S. capacity by 505,000,
or about 50% of its current output capacity in that country.
The deal, which has to be approved by antitrust and securities
regulators in Brazil, the U.S. and Europe, will also involve supply
contracts with Dow and third parties, Braskem said.
-By Paulo Winterstein, Dow Jones Newswires; 55-11-3544-7073;
paulo.winterstein@dowjones.com