Mexican PVC and specialty chemicals maker Mexichem SAB de CV has agreed to acquire PVC pipe maker Tubos Flexibles SA de CV from Mexican industrial giant Grupo Carso SAB de CV.
The Mexico Stock Exchange posted news of the deal on its Web site on March 13. Mexichem said the transaction would be done through its subsidiary Amanco Mexico SA de CV, and was subject to regulatory approval.
Tubos Flexibles, headquartered in Cuautitlan Izcalli, just north of Mexico City, manufactures PVC pipe for the construction and agricultural sectors.
It is a subsidiary of Carso's industrial unit Industrias Nacobre SA de CV and it has plants in Cuautitlan Izcalli, Monterrey, Hermosillo, Tepotzotlan and Merida, according to its Web site.
All the plants produce PVC pipe, and the Tepotzotlan plant also makes polyethylene and polypropylene products, including water tanks.
Grupo Carso is among Latin America's largest conglomerates, with companies operating in such fields as telecommunications, insurance, hospitals, tobacco and restaurant chains.
Its president, Carlos Slim Domit, is listed by Forbes magazine as the world's second-richest person, with a personal fortune of $60 billion.
Mexichem recently reported net sales of $2.1 billion in 2007, 122 percent up from 2006. It also reported a profit of $716.8 million, up 150 percent from 2006.
The key to growth was the construction industry, the company said in a news release announcing the 2007 results.
``Despite the tough situation that the U.S. markets are currently facing, and the threat of a recession, emerging markets have a wonderful chance to become the drivers of the global economy,'' the firm said.