Alpek, the petrochemicals arm of Mexican conglomerate Alfa, has been granted a 30-day extension to continue exclusive negotiations to acquire Petroquimica Suape and Citepe from Brazil’s Petrobras. Discussions have been ongoing since Jul. 28. Petroquimica Suape and Citepe operate an integrated PTA/PET facility in Ipojuca, Pernambuco, Brazil, with an installed capacity of 700,000 t/y and 450,000 t/y, respectively. Citepe also operates a 90,000 t/y polyester filament facility at the site.

Should the parties come to an agreement, the transaction still requires further corporate and government approvals before it can be finalized. Petrobras announced just a week ago that it is quitting its petrochemicals investments as it seeks to reduce its heavy debt burden and focus on its core oil and gas activities.