This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Braskem Acquires The Polypropylene (PP) Business Of Dow Becoming The Leader In The US PP Market

SAO PAULO, July 27, 2011 /PRNewswire/ -- BRASKEM S.A. (BM&FBovespa: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK), the leading resin producer in the Americas announced the acquisition of the Polypropylene Business ("Business") from The Dow Chemical Company ("Dow") for US$323 million. This transaction represents an important step in Braskem's growth strategy in the Americas and also consolidates its PP leadership in the US.

The Business has total annual polypropylene production capacity of 1,050 thousand tons, with four industrial plants in the US and Germany. The two plants located in the US, at Freeport and Seadrift, TX, add up to 505 thousand tons, increasing Braskem's PP capacity by 50% in the region. The two plants located in Germany, at the petrochemical complexes of Wesseling and Schkopau, have annual capacity of 545 thousand tons of PP.

"The acquisition of Dow's PP assets positions Braskem as the leading producer of polypropylene in the US, the world's largest thermoplastic resin market, and it also enhances our current position in Europe, an important market for our biopolymers strategy, said Braskem's CEO Carlos Fadigas.

"In addition, as our 2nd acquisition in the US, this transaction will enable Braskem to capture approximately US$140 million in synergies (net present value) through a more diversified portfolio, a more leveraged fixed cost base and working capital, logistics and supply optimization", he also said.

The closing of this transaction is expected to happen by the end of the third quarter 2011 pending regulatory approvals.

In this acquisition, Braskem engaged HSBC as financial advisor and Skadden, Arps, Slate, Meagher & Flom as legal advisor.

More information can be obtained from Braskem's Investor Relations Department by telephone +55 (11) 3576-9531 or by e-mail


Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.51 0.55%
FB $102.87 3.30%
GOOG $695.05 2.50%
TSLA $147.97 -0.19%
YHOO $27.63 3.00%


Chart of I:DJI
DOW 16,059.13 +44.75 0.28%
S&P 500 1,874.25 +22.04 1.19%
NASDAQ 4,351.5520 +82.7890 1.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs