Mergers in the Brazilian petrochemical industry

Apr. 5, 1997 A wave of mergers & acquisition is spanning the Brazilian petrochemicals sector, as companies seek to improve competitive levels. One of the major moves involves the resins producers PPH (PP) and Poliolefinas (PE) put under control of OPP Petroquimicaa subsidiary of Odebrecht group. Odebrecht also merged CPC (PVC) and Salgema (chlorine) into Trikem, and now is seeking to integrate non operational areas from both. Recently Occidental Quimica, through its controlled Vulcan Material Plastico, has acquired from Solvay do Brasil the control of the plastics processing Plasticos Plavinil, creating a $ 110 mm company. Petroquisa, Petrobras' arm for petrochemicals is preparing to sell off its share on Petroquimica Triunfo (PE), also owned by Dow Chemical and Petroplastic. Dow has put up for sale its stake in this company hiring the consultancy KPMG, who could find no prospective partner for Petroplastic.