SAO PAULO, June 24 (Reuters) - A high committee within Brazil’s antitrust regulator recommended blocking the purchase of Argentina’s chemical firm Solvay Indupa by petrochemical giant Braskem, according to Brazil’s official gazette on Tuesday.
In a non-binding decision, the General Superintendence of Brazil’s watchdog Cade said the deal is potentially anti-competitive. The ruling is not final and will be reviewed by Cade’s Tribunal.
Solvay Indupa, which makes vinyl and caustic soda in Argentina and Brazil, is a subsidiary of Belgian chemical group Solvay. The deal announced in December 2013 would mark Braskem’s first move into Argentina.
Braskem, Latin America’s largest petrochemical company, said it disagreed with the recommendation, noting it remains confident in the approval of the deal.
“Braskem is a price-taker, not a price-maker. With the purchase of Solvay Indupa, Braskem’s share in the PVC and caustic soda international markets will be of 2 and 1 percent, respectively,” the company said in a statement. (Reporting by Roberta Vilas Boas; Writing by Silvio Cascione; Editing by Sofina Mirza-Reid)