Brazil Consolidates Petrochemicals

Brazilian national oil company Petrobras is in negotiations with local firm Unipar to merge their petrochemical holdings in southeastern Brazil into a new company controlled by Unipar and dubbed Companhia Petroqu??mica do Sudeste. By integrating petrochemical complexes in the states of São Paulo and Rio de Janeiro, the firm would rival Braskem, a large Brazilian chemical maker formed in 2002. Earlier this month, Petrobras announced it was purchasing Brazilian chemical maker Suzano for $1.4 billion. Together, Unipar, Petrobras, and Suzano would hold more than 83% of Rio Polímeros, a petrochemical complex in Rio de Janeiro; about 75% of São Paulo's Petroqu??mica União complex; and 30% of synthetic rubber maker Petroflex. Braskem, however, says it will execute an option to buy Suzano's 20% Petroflex stake.