LyondellBasell in talks to acquire Brazilian plastics maker Braskem

Pertochemicals giant LyondellBasell and Brazilian construction firm Odrebecht, the controlling shareholder of Braskem, a leading plastic producer in the Americas, on Friday said the two companies are in exclusive talks to combine their plastics businesses.

"Both LyondellBasell and Braskem share a strong culture of operational excellence and legacies of value-creating innovation. We believe that the potential combination of LyondellBasell's and Braskem's complementary strengths, product portfolios and operational footprints would create significant value for our shareholders, customers and employees," the companies stated in a joint release.
“There is a potential range of complementary options, product portfolios and areas of activity of LyondellBasell and Braskem to create value for our shareholders,” says the release.
The companies, however, said the talks were in their early stages and that there were no guarantees a deal could be reached. Odrebecht holds a 38.3-per cent stake in Braskem while Petrobras, the state controlled oil major, owns 36.1 per cent.
Petrobras said that, if the negotiations succeed, “it will analyse the terms and conditions” of the offer.
While Braskem's board of directors and management have been informed of the existence of these discussions, the companies said the discussions are preliminary and no agreements have been reached.
Among other things, the parties will need to complete appropriate diligence, negotiate definitive agreements and obtain corporate approvals.
There is also no assurance that the discussions will result in a transaction or on what terms any transaction may occur. The companies said any further information regarding the proposal will be made available as and when the discussions progress.
LyondellBasell and Odebrecht SA do not intend to make any further comment unless and until the discussions conclude or are required by applicable law."