Sector News

LyondellBasell ends talks with Odebrecht to buy Braskem

June 5, 2019
Chemical Value Chain

Shares in petrochemical producer Braskem were down 20 percent in pre-market trading in Sao Paulo after petrochemical giant LyondellBasell Industries NV on Tuesday said it had ended talks with Braskem SA’s controlling shareholder, Brazilian construction conglomerate Odebrecht SA, to acquire the company.

Reuters reported in March that talks with Brazilian conglomerate Odebrecht SA over a potential $11 billion deal for Braskem had slowed due to issues linked to a delayed U.S. filing and a supply contract for naphtha with Petrobras.

In May, Braskem said its U.S.-listed shares would be delisted by the New York Stock Exchange after it failed to file its 2017 annual report on time.

Lyondell’s board had decided that it would not conclude the deal before Braskem files its 2017 20F annual report with the U.S. Securities and Exchange Commission, one source previously told Reuters.

Last week, Braskem announced it had to pay additional leniency fines to Brazilian authorities. Brazil’s federal auditor and controller’s office said on Friday Braskem had agreed to pay 2.87 billion reais ($733 million) by 2025 in a leniency deal to settle corruption charges.

The company already had paid 1.33 billion reais of the fine to federal prosecutors..

Odebrecht, which has been trying to restructure after being implicated in Brazil’s sweeping “Car Wash” scandal, had been discussing the deal with Lyondell for more than a year and a half.

The end of the talks to sell Braskem, Odebrecht’s crown jewel, complicates the restructuring efforts of the highly indebted conglomerate. Two of its units, Odebrecht Engenharia e Construcao, and ethanol unit Atvos, are already restructuring debt. Atvos has filed for bankruptcy protection last week.

LyondellBasell said it ended talks with Odebrecht SA “after careful consideration” but did not elaborate further.

Shares of LyondellBasell were up 2.3% at $79.50 in premarket trading.

By Debroop Roy and Tatiana Bautzer

Source: Reuters

comments closed

Related News

November 27, 2022

ICIG to acquire MSSA from Nippon Soda

Chemical Value Chain

International Chemical Investors Group (ICIG) has entered exclusive negotiations with Nippon Soda and made what it said is a “firm and binding offer” to acquire the Japanese group’s offshoot Métaux Spéciaux (MSSA), a sodium metal specialist.

November 27, 2022

FIFA World Cup: Coca-Cola launches 100% recycled PET bottles to promote Qatari recycling

Chemical Value Chain

Aligning with the SC’s key initiatives on responsible plastic recycling, Coca‑Cola Middle East’s pilot of 100% rPET bottles marks the first time the packaging will be in circulation at a FIFA World Cup tournament and serves as Coca‑Cola’s debut in locally producing the bottles in the region.

November 27, 2022

Neste acquires another used-oils business in the U.S.

Chemical Value Chain

Through the transaction, Neste is acquiring a leading UCO collection and recycling business on the US West Coast, covering the collection, logistics and storage of UCO in California, Oregon and Washington. Together with the previous acquisitions (…) the transaction continues to enhance Neste’s global raw materials sourcing platform.