PVC and specialty chemicals maker Mexichem SAB de CV has appealed the Mexican antitrust authority's refusal to allow the Mexico City-based conglomerate to buy PVC resins producer Polycid SA de CV and plastic pipe maker Plasticos Rex SA de CV.
Enrique Ortega, Mexichem's investment relations director, said July 22 that he expects a decision on the appeal by the end of September.
Cydsa SAB de CV, of Garza García, Mexico, owns both targeted companies. Cydsa announced in April 2008 that Mexichem had proposed that Cydsa swap Polycid and Rex for a Mexichem caustic soda and chlorine plant in Santa Clara, Mexico, plus a cash payment from Mexichem.
Mexico's Federal Competition Commission has ruled that the deals represent a risk for the national market.
The Mexican plastics industry association Anipac also has said the deal would create a Mexichem-controlled monopoly of PVC resin supplies in Mexico.
Mexichem is confident that it will prevail. Asked whether the company which is halfway through a $1 billion acquisition spree in the Americas will announce further takeovers soon, Ortega said no.
He added: We will be focusing on the consolidation of these two companies [Polycid and Rex].
Mexichem on Aug. 3 said its shareholders authorized a share price of 14.70 pesos ($1.12) for a stock offering to raise capital.
In a filing with the Mexican Stock Exchange, the company said shareholders approved a plan to offer 154 million new shares, which would raise around $172 million. Mexichem's market capitalization is around $2 billion.
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