Petrobras Acquires 100% Stake In Innova - Deal Analysis from GlobalData

• Publication date: May 2011

Petrobras Acquires 100% Stake In Innova - Deal Analysis from GlobalData Summary Petroleo Brasileiro S.A. (Petrobras), an integrated oil and gas company of Brazil, acquired 100% stake of Innova S.A. for purchase consideration of $332m from Petrobras Energia Internacional S.A. (PEISA), a wholly owned subsidiary of Petrobras Argentina SA. Petrobras company sources stated, “This acquisition allows Petrobras to invest in ...

Petrobras Acquires 100% Stake In Innova - Deal Analysis from GlobalData

Summary

Petroleo Brasileiro S.A. (Petrobras), an integrated oil and gas company of Brazil, acquired 100% stake of Innova S.A. for purchase consideration of $332m from Petrobras Energia Internacional S.A. (PEISA), a wholly owned subsidiary of Petrobras Argentina SA.

Petrobras company sources stated, “This acquisition allows Petrobras to invest in Innova S.A, aiming to align assets in the Petrobras business plan as well as allowing Petrobras Argentina to focus its business operations in Argentina.”

Innova S.A. has production facilities at Triunfo where it produces styrene monomer, polystyrene and ethylbenzene. The acquisition will help Petrobras to gain access to Innova S.A production capacities of benzene derivatives and styrene derivatives, adding them to its existing product portfolio along with complete ownership o Innova S.A.

Scope

- Rationale behind Petrobras’s acquisition of Innova S.A.
- Strategic Benefits for Petrobras Argentina
- Geography covered - Brazil
- Deal Financials and Valuations
- Information on acquired assets

Reasons to buy

- Develop a sound understanding of the major M&A's, partnerships and joint ventures taking place in South and Central America's petrochemical industry
- Identify the most lucrative segments to leverage on the growth opportunities available in the South and Central America's petrochemical industry
- Take better decisions based on detailed analysis of the deal
- Know about the major companies, which are adopting a divestment or acquisition strategy to enhance their business portfolios

Petrochemical Industry in Argentina

1 Table of Contents
1 Table of Contents 1
1.1 List of Tables 1
1.2 List of Figures 1
2 Summary 1
2.1 Deal Overview 1
2.2 Deal In Brief 1
2.3 Acquisition To Help Petrobras To Expand Its Product Portfolio in Brazil 2
2.4 Acquisition To Give Petrobras Total Control of Innova S.A. 2
2.5 Tax Benefit Through Innova S.A. Operation 2
2.5.1 Details of the Acquired Company 3
2.6 Other Benefits Of The Transaction 3
2.7 Deal Financials and Valuations 3
2.7.1 Companies Involved 3
2.7.2 Deal Financials 3
2.7.3 Deal Rationale 3
2.7.4 Detailed Target Information 3
2.7.5 Detailed Acquirer Information 3
2.7.6 Detailed Vendor Information 4
3 Appendix 4
3.1 Methodology 4
3.1.1 Coverage 4
3.1.2 Secondary Research 4
3.1.3 Primary Research 5
3.1.4 Expert Panel Validation 5
3.2 Contact Us 5
3.3 Disclaimer 5

1.1 List of Tables

Table 1: Innova S.A., Petrochemicals Assets, Brazil, 2010 3
Table 2: Companies Involved 3
Table 3: Financials of the Deal 3
Table 4: Target Information 3
Table 5: Acquirer Information 3
Table 6: Vendor Information 4

1.2 List of Figures

Figure 1: Petrobras, Petrochemicals Products, Brazil, MMTPA 2
Figure 2: Petrobras, Petrochemicals Capacity, Brazil, % 2
Figure 3: Equity Structure, Innova S.A., % 2

Companies Mentioned

Benzene in Argentina

Argentina Benzene Capacity, `000 Tonnes

• $ 250
• Industry data
• February 2013

Yearly, From 2008 To 2016
By Business Monitor International
Source: Companies, BMI

• Industries : Petrochemical
• Countries : Argentina

Petrochemical in Argentina

Argentina Ethylene Exports, `000 Tonnes

• $ 250
• Industry data
• February 2013

Yearly, From 2008 To 2016
By Business Monitor International
Source: Companies, BMI

• Industries : Petrochemical
• Countries : Argentina

Argentina Linear Low Density Polyethylene Capacity, `000 Tonnes

• $ 250
• Industry data
• February 2013

Yearly, From 2008 To 2016
By Business Monitor International
Source: Companies, BMI

• Industries : Petrochemical
• Countries : Argentina

Argentina Polyolefins Consumption, `000 Tonnes

• $ 250
• Industry data
• February 2013

Yearly, From 2008 To 2016
By Business Monitor International
Source: Companies, BMI

• Industries : Petrochemical
• Countries : Argentina

Argentina High Density Polyethylene Capacity, `000 Tonnes

• $ 250
• Industry data
• February 2013

Yearly, From 2008 To 2016
By Business Monitor International
Source: Companies, BMI

• Industries : Petrochemical
• Countries : Argentina

Argentina Styrene-butadiene Rubber Capacity, `000 Tonnes

• $ 250
• Industry data
• February 2013

Yearly, From 2008 To 2016
By Business Monitor International
Source: Companies, BMI

• Industries : Petrochemical
• Countries : Argentina