Petrobras To Buy Brazil's Suzano For $1.4 Billion | Chemical & Engineering News
Volume 85 Issue 33 | p. 23 | Concentrates
Issue Date: August 13, 2007

Petrobras To Buy Brazil's Suzano For $1.4 Billion

Department: Business | Collection: Economy

Brazilian state oil company Petrobras is making another big consolidation move in that country's petrochemical sector through the purchase of Suzano Petroquímica for $1.4 billion. Petrobras intends to pay about $1.1 billion for the 76% interest in Suzano held by Suzano Holding, the entity that controls Suzano. A subsequent tender offering for the remaining shares will cost Petrobras another $300 million. Suzano earned $107 million before taxes on about $1.3 billion in sales in 2006. The company, with 685 million tons of annual capacity, is the largest polypropylene producer in Latin America. Suzano also owns a 33% interest in Rio Pol??meros, which started up a 540 million-ton ethylene and polyethylene complex in the state of Rio de Janeiro in 2005. Petrobras already held a 17% interest in that facility. Suzano owns a 7% stake in Petroqu??mica União (PQU), which operates a petrochemical complex in the state of São Paulo. Petrobras' existing stake in PQU is 17%. In addition, Suzano also owns a 20% interest in synthetic rubber maker Petroflex. Earlier this year, Petrobras, local industrial group Ultrapar, and the Brazilian petrochemical maker Braskem announced the joint purchase of petrochemical maker and refiner Ipiranga for $4 billion.

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