Ultrapar Participacoes SA, one of Brazil’s largest industrial conglomerates has entered into a deal with Thailand’s Indorama Ventures to sell its specialized chemicals unit Oxiteno to Indorama for USD 1.3 Billion. The deal is expected to be completed by Q1 2022.
The sale indicates completion of a previously announced reorganization by Ultrapar which has undergone a string of disinvestments including earlier sale of the company’s ConnectCar and Extrafarma units earlier this year.
After undergoing a series of disinvestments Ultrapar will now be focusing solely on developing its energy and infrastructure business. The company already has a fuel retailer Ipiranga. Ultrapar is also in talks to acquire Alberto Pasqualini Refinery (REFAP) which is located in the southern state of Rio Grande do sul in Brazil in order to increase its Crude processing capacity by 201,000 barrels per day.
Oxiteno has manufacturing facilities in Brazil, Mexico and united states and produces chemicals for a variety of end uses including food processing, agriculture, and hygiene. The main products of Oxiteno include surfactant alkoxylates.
Global Alkoxylates Plant Capacity stood at around 4.05 million tonnes in 2020 and the global demand is projected to grow at a CAGR of 5.26% by volume due to its wide range applications in various end use industries like Paints and coatings, Pulp and Paper, Agrochemicals, textiles, Personal care, Pharmaceuticals, Detergents.
Indorama is a Thailand based producer of Polyester, Glycols, and Surfactants. The deal is set to further strengthen Indorama’s surfactant business that Indorama bought from Huntsman. For Indorama, the Oxiteno acquisition will further the expansion of the company in the western hemisphere in Glycols, Ethylene Oxide, and Surfactants.