Brazil Ultrapar may soon finalise Oxiteno sales talks with Indorama

HOUSTON (ICIS)–Ultrapar should soon finalise negotiations with Indorama regarding the sale of surfactants producer Oxiteno, the Brazilian conglomerate said on Thursday.

“We announced negotiations on an exclusive basis with Indorama for the sale of Oxiteno,” said Frederico Curado, Ultrapar CEO. He made his comments during an earnings conference call.

“Our expectations are that we should finalise this rather soon,” he said.

Curado did not specify a timetable.

Indorama did not immediately respond to a request for comment.

Ultrapar announced that the two sides had entered exclusive talks in mid-June. At the time, Ultrapar said the two companies were still discussing financial terms, and they had not signed any contracts or sales agreements.

Oxiteno is the sole producer of ethylene oxide (EO) in Brazil. The company also makes ethylene glycol (EG) and surfactants. It has plants in the US, Mexico and Brazil.

For Indorama, Oxiteno would cap a multiyear expansion in the Americas, which included EO, EG and surfactants plants.

ULTRAPAR CONTINUES TALKS TO BUY REFINERY
The possible sale of Oxiteno comes as Ultrapar is seeking to enhance its existing fuel distribution businesses.

As part of this move, Ultrapar is pursuing the acquisition of Petrobras’ Alberto Pasqualini Refinery (REFAP) in the southern state of Rio Grande do Sul in Brazil. It would be Ultrapar’s sole refinery. REFAP can process 201,000 bbl/day of crude.

Earlier this month, Petrobras extended the deadline to sell REFAP to the end of October from the end of July. It was one of three refineries that received deadline extensions for their possible sales.

Curado said the deadline is still adequate and sufficient to finish negotiations.

Ultrapar also owns fuel retailer Ipiranga. fuel distributor Ultragaz and liquid bulk storage firm Ultracargo.

Thumbnail image shows bubbles, which often form in solutions containing surfactants. Image by Shutterstock.