Braskem in Quattor Talks, Eyes US Targets

Brazil’s two largest petrochemical companies, Braskem and Quattor, are in talks to merge, with the larger, Braskem, likely to be the main consolidator, say people close to the process. Reached by LatinFinance Friday, Carlos Fadigas, CFO of Braskem, limits his remarks on the subject to confirming discussions. Talks were apparently prompted by Petrobras’ desire to sponsor the creation a single, large petrochem giant to compete on a global scale. Petrobras is a minority shareholder in both Braskem, which is controlled by Odebrecht, and Quattor, which is held by Unipar. Estater is advising Quattor, while Morgan Stanley is heard aiding Braskem. Separately, Fadigas notes Braskem continues to evaluate North American targets, and is close to making an offer for an asset. He points to remarks made recently by CEO Bernardo Gradin that an offer will likely be made this year.