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Lyondell-Braskem deal delayed by Petrobras supply contract talks
Brazil’s recent change of government has further delayed the long-awaited finalization of LyondellBasell Industries NV’s plan to buy Brazilian petrochemical company Braskem SA, three sources with knowledge of the matter said this week.
Netherlands-based LyondellBasell first said it had entered into exclusive talks to acquire control of Braskem from Brazilian conglomerate Odebrecht SA [ODBES.UL] in June. However, the deal’s price depends on a long-term naphtha supply contract with state-controlled Petroleo Brasileiro SA, which also owns shares in Braskem.
The current contract with the state-controlled oil company, known as Petrobras, expires in December 2020.
The sources, who requested anonymity to discuss private talks, said a draft naphtha supply agreement was reached in December under former Petrobras Chief Executive Officer Ivan Monteiro. But Monteiro declined to ratify the deal when it became clear he would be replaced under the newly elected administration of far-right President Jair Bolsonaro, the people said.
Lyondell representatives are now waiting to hear whether there will be any changes to the Petrobras team that was negotiating the contract and for the talks to resume, one of the sources added. Jorge Celestino Ramos, Petrobras’ refining and natural gas director, who had headed the team, was replaced earlier this month by Anelise Lara.
Sourec: Reuters
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