OREANDA-NEWS. Braskem announces that it received the decision of Brazil's antitrust agency CADE (Conselho Administrativo de Defesa Econômica) opposing the acquisition of Solvay Indupa. Based on the experience acquired in its activities in the PVC market over the last 35 years, Braskem disagrees with CADE's decision, which it considers prejudicial to Brazilian manufacturers.

As shown by over a dozen analyses, studies and reports issued by prominent economists, jurists and technical and financial consulting firms, the relevant PVC market is international, as recognized by CADE's own precedent consolidated over more than a decade. Moreover, with the objective of favorably concluding the transaction, Braskem presented solutions it deemed effective for resolving CADE's concerns and regrets that they were not accepted. This decision weakens Brazil's petrochemical industry by affecting its capacity to capture of efficiencies of scale that would enable it to compete more effectively in international markets, particularly given the current scenario of the global PVC industry marked by lower profitability and a clear global trend of consolidation of assets.

Following the publication of CADE's decision, the Company is currently evaluating the measures available to it with regard to the outcome.