LyondellBasell Industries NV has approached Brazil’s Braskem SA for a potential takeover, valuing the petrochemicals company at more than $10 billion, the Wall Street Journal reported on Monday.
The talks are at an early stage and there is no guarantee of a deal, the Journal reported, citing people familiar with the matter.
A deal would help LyondellBasell expand in Latin America, where Braskem is the biggest petrochemicals company.
The news comes amid a wave of big mergers in the chemicals sector. Dow Chemical and DuPont completed their $130 billion merger last month to form DowDuPont, while ChemChina bought Swiss seeds group Syngenta for $43 billion earlier this year.
LyondellBasell and Braskem did not immediately respond to Reuters requests for comment.
LyondellBasell’s shares rose 6 percent to $105.03 while Braskem’s U.S.-listed shares climbed 14 percent to $33.42 in afternoon trading on the New York Stock Exchange.
By Ahmed Farhatha
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?