Alpek obtained approval from CADE for the acquisition of PetroquímicaSuape and Citepe

Monterrey, Mexico. February 7, 2018 – Alpek, S.A.B. de C.V. (“Alpek”) announced today that it obtained the required regulatory approval from the Court of the Administrative Council for Economic Defense (CADE) in Brazil to acquire 100% of Companhia Petroquímica de Pernambuco (“PetroquímicaSuape”) and Companhia Integrada Têxtil de Pernambuco (“Citepe”) from Petróleo Brasileiro S.A. (“Petrobras”). As part of the approval process, Alpek proposed entering into a merger control agreement (Acordo de Controle de Concentração – ACC), committing to maintain an environment of effective competition.

The closing of this transaction is still dependent on several customary conditions precedent. The agreed upon price is U.S. $385 million for Petrobras’ 100% stake in the two companies on a debt-free basis, subject to adjustments in working capital, among others, and payable on the closing date.

Petroquimica Suape and Citepe operate an integrated PTA-PET facility in Ipojuca, Pernambuco, Brazil with an installed capacity of 640 and 450 thousand tons per year PTA and PET, respectively. Citepe also operates a 90 thousand tons per year texturized polyester filament plant on site.