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Mergers & Acquisitions Deal Analysis - Braskem To Acquire Sunoco Chemicals From Sunoco
GlobalData, May 2010, Pages: 12
Mergers & Acquisitions Deal Analysis - Braskem To Acquire Sunoco Chemicals From Sunoco
Summary
Sunoco Inc., a manufacturer and marketer of petroleum and petrochemical products, reached an agreement to sell Sunoco Chemicals, Inc., a manufacturer and distributor of commodity and intermediate petrochemicals, to Braskem S.A., a producer of petrochemicals and thermoplastic resins in U.S., for a consideration of approximately $350 million in cash. The sale includes Sunoco's polypropylene manufacturing facilities in Marcus Hook, Pennsylvania; La Porte, Texas; and Neal, West Virginia, which have the combined capacity to produce approximately 2.1 billion pounds of polypropylene annually. It also includes Sunoco's Research and Technology Center located in Pittsburgh, Pennsylvania. Chairman and Chief Executive Officer of Sunoco, Lynn L. Elsenhans said, 'The sale of our polypropylene business demonstrates the company's continued progress in realigning our portfolio of assets and improving returns on invested capital. This transaction produces value for our shareholders by monetizing a business that has not been able to meet its cost of capital and provides us with capital to redeploy for future growth in our areas of strategic focus. Sunoco is grateful to the talented and dedicated employees who made the business an important part of the company for many years. We wish them well as they prepare to join Braskem.' Following the completion of the divesture Sunoco will retain its phenol and derivatives business, which has manufacturing assets located in Philadelphia, Pennsylvania and Haverhill, Ohio. Sunoco expects to record a pre-tax loss on the sale in the first quarter of 2010 of approximately $185-$195 million.
Scope
- Rationale behind Braskem SA's acquisition of Sunoco Chemicals
- Strategic Benefits for Sunoco Inc. in divesting its assets
- Geography covered - US
- Deal Financials and Valuations
Reasons to buy
- Develop a sound undestanding of the major M&A's, Partnerships, And Joint Ventures taking place in North American Oil & Gas industry
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the US oil & gas market
- Get a detailed analysis of a deal to enable you to take better decisions
- Know about the major companies, which are adopting a divestment or acquisition strategy to enhance their business portfolios
- Learn about the key fiancial advisors in a particular segment in the Oil & Gas Industry
- Understand the various means of raising funds from the market.
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