BUENOS AIRES – Argentine state-controlled oil company YPF said it would pay $122 million for shares of petrochemical companies Petroken and Petrocuyo, which produce and sell polymers.
London-based LyondellBasell is selling its 50 percent stake in Petroken Petroquimica Ensenada S.A., the largest producer of polypropylene in Argentina, YPF said.
YPF is also acquiring 46 percent of the stock in Petrocuyo.
The deal, which is subject to certain conditions, is expected to close before the end of the year, YPF said.
The deal marks a return to a strategic petrochemical sector, YPF said, adding that it had exited the market between 2004 and 2005.
“The petrochemical sector has enormous potential in Argentina and is part of YPF’s growth strategy in an industry with high regional competition,” YPF CEO Miguel Galuccio said.
YPF and Grupo Inversor Petroquimica will have equal stakes in Petroken and Petrocuyo.