News Post
LyondellBasell close to binding offer for Brazil's Braskem
LyondellBasell Industries NV is close to presenting a binding offer to acquire control of Brazilian petrochemical company Braskem SA, two people with knowledge of the matter said.
LyondellBasell is discussing the extension of a long-term naphtha supply contract with Petroleo Brasileiro SA seen as pivotal to valuing Braskem, and talks between the companies are expected to finish over the next days, the sources said, asking for anonymity because talks are private.
A binding offer could be delivered as soon as the end of this month, the people said.
Once a long-term supply contract is established, LyondellBasell is expected to bid for control of Braskem, first through an offer to controlling shareholder Odebrecht SA. Odebrecht, a Brazilian conglomerate involved in the country’s widest-ever corruption probe has been forced to sell assets over the last two years.
The offer will include cash and shares, the people added. The same value per share would be extended to Petrobras, the Brazilian state-controlled oil company, which is a minority shareholder in Braskem, as well as a supplier.
One of the people said Petrobras is still discussing whether to sell its full stake in Braskem or hold onto shares in the combined company. If concluded, the deal would create the world’s largest petrochemical company.
Odebrecht, LyondellBasell and Petrobras did not immediately respond to emails seeking comment on the matter.
REUTERS Reporting by Tatiana Bautzer, Editing by Bill Berkrot
For subscriptions or a demo:
Sam Hassaniyeh
Subscription Executive
Phone: +44 203 4092242
For questions or to give feedback:
Thad Pittman
Senior Researcher
Phone: +1 (713) 525-4605
Download our brochure today!
Project News