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Brazil/Uruguay: Conditions imposed on chemical buyout

By  |  November 21, 2013

Brazilian competition regulator CADE announced its clearance of a chemical company buyout, though imposed conditions on the deal, reports say.

Brazil’s Oxiteno will be allowed to acquire Uruguay-based American Chemical for the proposed $79 million, though CADE will require Oxiteno to supply a certain chemical to rival producers within a certain price range; according to reports, the decision aims to prevent Oxiteno’s abuse of a newly establish dominant position.

The chemical in question is lauryl alcohol ethoxylate, used to produce SLES that is found in various cosmetics.

Following the parties’ announcement in May 2012 of the deal, CADE probed the agreement and found that Oxiteno would gain a significant share of the SLES market.

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