Mexichem’s Subsidiary in Brazil and CADE (Brazilian Antitrust Authority) Reach an Agreement

March 27, 2018

TLALNEPANTLA DE BAZ, Mexico–(BUSINESS WIRE)–Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“The Company” or “Mexichem”)
announces that its Brazilian subsidiary, Mexichem Brasil Industria de
Transformação Plástica, Ltda. (formerly Amanco Brasil, Ltda.), has
reached a cease and desist agreement with the Administrative Council of
Economic Defense in Brazil (CADE in the Portuguese acronym). Mexichem’s
subsidiary was notified by CADE in the second quarter of 2016 of alleged
violations of competition laws in Brazil, supposedly committed by the
subsidiary and some of its former employees from 2003 to 2009. Since
2016, the Company recognized, in its financial reports, the existence of
a contingent liability associated with this investigation, until the
fourth quarter of 2017 it was able to estimate in a more reliable basis
and according with the information available at that time, the potential
existence of a financial liability which was included and announced in
such report.

Today, the agreement was approved by the Tribunal of the CADE in
accordance with Article 10, subsection VII, of Law N ° 12529, of
November 30, 2011, in compliance with the decision of the Court rendered
in the 116th Session of the Ordinary Judgment held on
December 13, 2017. By means of this agreement, Mexichem Brasil Industria
de Transformação Plástica, Ltda. (formerly Amanco Brasil, Ltda.) has
committed to pay a pecuniary contribution of R$95.1 million within 240
days following the date on which the agreement is published in the
official gazette of such country. CADE also imposed pecuniary
contributions to former employees who were part of the Company during
the investigated period.

Mexichem is fully committed to complying with local regulations in all
of the countries in which it has operations and has implemented all
corrective measures required.

ABOUT MEXICHEM

Mexichem is a global leader in plastic piping and one of the world’s
largest chemical and petrochemical companies. The company contributes to
global development by delivering an extended portfolio of products to
high growth sectors such as infrastructure, housing, agriculture,
datacom and water management, among others. With operations in 41
countries, 137 facilities worldwide and more than 22,000 employees,
Mexichem has the rights to produce fluorspar in two mines in Mexico, as
well as 8 training academies and 17 R&D labs. Operations are divided
into three Business Groups: Fluent, Vinyl and Fluor. Mexichem has annual
revenues of US$5.8 billion and has been traded on the Mexican Stock
Exchange for more than 30 years. The company is member of the Mexican
Stock Exchange Sustainability Index and the sustainability emerging
markets index FTSE4Good.

Forward-looking Statements

In addition to historical information, this press release contains
"forward-looking" statements that reflect management's expectations for
the future. The words “anticipate,” “believe,” “expect,” “hope,” “have
the intention of,” “might,” “plan,” “should” and similar expressions
generally indicate comments on expectations. The final results may be
materially different from current expectations due to several factors,
which include, but are not limited to, global and local changes in
politics, the economy, business, competition, market and regulatory
factors, cyclical trends in relevant sectors; as well as other factors
that are highlighted under the title “Risk Factors” on the annual report
submitted by Mexichem to the Mexican National Banking and Securities
Commission (CNBV). The forward-looking statements included herein
represent Mexichem’s views as of the date of this press release.
Mexichem undertakes no obligation to revise or update publicly any
forward-looking statement for any reason unless required by law.”

Mexichem has implemented a new Code of Ethics that rules its
relationships with its employees, clients, suppliers and general groups.
Mexichem’s Code of Ethics is available for consulting in the following
link: http://www.mexichem.com/Codigo_de_etica.html
Additionally, according to the terms contained in the Securities
Exchange Act No 42, Mexichem Audit Committee established a mechanism of
contact, which allows that any person that knows the unfulfilment of
operational and accounting records guidelines and lack of internal
controls of the Code of Ethics, from the Company itself or from the
subsidiaries that this controls, file a complaint which is anonymously
guaranteed. The whistleblower program is facilitated by a third party.
The telephone number in Mexico is 01-800-062-12-03. The website is http://www.ethic-line.com/mexichem
and contact e-mail is [email protected].
Mexichem’s Audit Committee will be notified of all complaints for
immediate investigation.