After two failed auctions in eight months, Brazil's Central
Bank finally sold its stake in South America's largest
chemicals group in July to two Brazilian engineering and
chemical groups, Odebrecht and Mariani, for $541.9 million. The
sale of Petroquímica do Nordeste, known as Copene,
clears the way for a much-needed restructuring of Brazil's
petrochemical sector. Copene can now unshackle itself from the
myriad shareholders that controlled its business, consolidate
its assets and pursue aggressive growth.
Consolidating and Integrating
With the Brazilian government's divestment from a major petrochemical group, the industry is on its way to reaching global standards of efficiency.
"We think it is a historical transaction [because] it
reshapes the petrochemical industry in Brazil creating the
largest petrochemical group in Latin America, allowing it to
become a player on a worldwide scale," says Carlos
Guimarães, head of investment banking for Latin America
at Salomon Smith Barney, which advised Odebrecht Group on the
The shareholder structure of...
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