Brazil’s Braskem to buy Dow’s polypropylene unit
In a deal that will make it the largest polypropylene producer in North America, Brazil's Braskem SA has agreed to pay US$323 million for Dow Chemical Co.'s PP unit.
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 PP 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. According to Braskem, the Texas plants will increase the company’s U.S. capacity by about 50 per cent of its current capacity in the country.
“The acquisition of Dow’s assets consolidates our leadership in [PP] in the U.S., the largest thermoplastic resins market, and it also enhances our current position in Europe, an important market for our biopolymers strategy,” said Carlos Fadigas, CEO of Sao Paulo-based Braskem.
In a statement, Dow Chemical said it expects the transaction to close by the end of the third quarter, pending regulatory approval.