Brazil antitrust regulator approves Oxiteno sale to Indorama

Ultrapar has reported that on March 7, the General Superintendence of the Administrative Council for Economic Defense (CADE) recommended the approval, without restrictions, of the sale of Oxiteno to Indorama Ventures PLC.

As long as there is no appeal from third parties or a recall by the CADE Court, the approval will become final within 15 days from the publication of the General Superintendence's recommendation.

The holding company, which also owns Rede Ipiranga and Ultragaz, closed the sale agreement in June last year for US$1.3 billion. The transaction is part of Ultrapar's attempt to focus only on the oil and gas market. In addition to Oxiteno, Ultrapar had previously closed the sale of Extrafarma to Pague Menos for R$700 million.

Oxiteno is a leader in the production of surfactants and specialty chemicals, and offers a comprehensive product portfolio for a variety of applications in Crop Solutions, Home & Personal Care, Coatings, Oil&Gas. The company has 11 factories, distributed among Brazil, the United States, Mexico and Uruguay, with five research and development centres and eight commercial offices in the Americas, Europe and Asia.

Indorama already operates in Brazil, in the state of Pernambuco, mainly producing PET resins. The company acquired the assets of Italian M&G.