CADE grants clearence to the creation of largest petrochemical group of the Americas

The Conselho Administrativo de Defesa Econômica (Cade) approved on February 23 the purchase of Quattor by Braskem, creating the largest petrochemical group in the Americas.

As a condition for granting clearance CADE imposed some obligations on the Parties to enable the enforcer to monitor the group´s operations.

For instance, the merged entity shall previously notify CADE about any exclusive thermoplastic resin agreements entered into with overseas suppliers, as well as reporting several data on a periodic basis so the enforcer can monitor performance of the market.

All thermoplastic resin related contracts utilized buy foreign companies on the commercialization of the product must be informed to CADE, as well as any other form of contract that may confer with Braskem some sort of exclusivity.

Despite of the high concentration on the raw petrochemical material in the market, the Commissioners considered that there is not a threat to competition because of the possibility of the customers to turn to the international market to obtain its supply of material.

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