Monterrey, Mexico. February 7, 2018
Alpek, S.A.B. de C.V. (“Alpek”) announced today that it obtained the required regulatory approval from the Court of the Administrative Council for Economic Defense (CADE) in Brazil to acquire 100% of Companhia Petroquímica de Pernambuco (“PetroquímicaSuape”) and Companhia Integrada Têxtil de Pernambuco (“Citepe”) from Petróleo Brasileiro S.A. (“Petrobras”). As part of the approval process, Alpek proposed entering into a merger control agreement (Acordo de Controle de Concentração – ACC), committing to maintain an environment of effective competition.
The closing of this transaction is still dependent on several customary conditions precedent. The agreed upon price is U.S. $385 million for Petrobras’ 100% stake in the two companies on a debt-free basis, subject to adjustments in working capital, among others, and payable on the closing date.
Petroquimica Suape and Citepe operate an integrated PTA-PET facility in Ipojuca, Pernambuco, Brazil with an installed capacity of 640 and 450 thousand tons per year PTA and PET, respectively. Citepe also operates a 90 thousand tons per year texturized polyester filament plant on site.