A high committee within Brazil’s antitrust authority CADE has reportedly recommended against approving a proposed merger between two chemical companies, local reports say Tuesday.
Petrochemical conglomerate Braskem is looking to acquire Solvay Indupa, which operates in Brazil and Argentina, a deal that would open the door for Belgium’s Solvay into Brazil for the first time.
But the General Superintendence at CADE has ruled that the transaction should be blocked; that decision, however, is not binding, but will be taken into consideration by CADE’s Tribunal when reviewing the merger.
Braskem is Latin America’s largest petrochemical competitor, reports say, and expressed disappointment in the committee’s decision. The company, however, said it remains optimistic the deal will ultimately be approved.
Full content: Reuters
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