Oakland, Calif. -- The Clorox Co. has entered into a new agreement with Bombril S.A. Under the terms of the agreement, Clorox will pay $175 million to acquire a 50% stake in Clorox-Bombril S.A., a new venture to be formed by Clorox and Bombril S.A. This venture will provide Clorox with a significant interest in the leading cleaning utensils and household cleaners business in Brazil, according to a Business Wire press release.

The report also went on to say that the “transaction is subject to the seller successfully delisting Bombril S.A. from the Sao Paulo Stock Exchange and to the execution of a shareholders' agreement between the two companies that, among other things, will provide for Clorox's role in the management of the new venture.”

The companies expect to finalize the transaction by July or August 2001.