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Mexico: Alpek buying Petrobras’ petrochemicals unit

By  |  August 1, 2016

A source with direct knowledge said that Mexico’s Alpek SA de CV is expected to offer up to $700 million for Brazilian state-run oil company Petroleo Brasileiro SA’s petrochemicals units in the northeastern state of Pernambuco.

Brazil’s Petrobras announced exclusive talks with the Mexican group over the sale of PetroquímicaSuape and Citepe. The Brazilian company and Alpek will negotiate the deal for 60 days.

Petrobras’ petrochemical units have accumulated $1.7 billion in losses over the last two years, which include impairment charges related to the largest-ever corruption probe in Brazil.

The plants in Pernambuco produce PTA which is a raw material for PET resin, and polyester fiber. The sale will reduce Petrobras’ debt, as well as the need to inject more cash into the unprofitable plants.

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