Apollo Seeks Approval to Move Forward with Braskem Acquisition

Written by Bruno Teles

Published on 26/04/2023 at 12:25

Braskem (foto/divulgação)

Be the first to react!

Braskem Sale Remains Uncertain as Apollo Awaits Petrobras Signal

The American management firm Apollo is slowly moving toward the purchase of Braskem, a petrochemical company controlled by Novonor and owner of an important share of the Brazilian petrochemical sector. The sale process has been delayed due to uncertainty regarding Petrobras’ plans, which owns 47% of the voting capital of the petrochemical company, regarding its stake in the firm.

According to sources close to the negotiations, Apollo has finally requested authorization from its board to proceed to the more complex and costly stage of due diligence, six months after submitting a new purchase proposal to Novonor and requesting hundreds of information about the Brazilian company.

Apollo’s Offer Includes 100% of Braskem’s Shares, but No Binding or Non-Binding Purchase Offer Yet

The offer from Apollo includes 100% of Braskem’s shares, including the percentage from Petrobras. However, there is still no binding or non-binding purchase offer, and the due diligence to identify liabilities has not yet begun.

ARTICLE CONTINUES BELOW

New Government Advocates for Petrobras’ Maintenance in the Petrochemical Industry, and Sales to Foreigners Are Unfavorable in Brasília

There are supporters in the new government for the maintenance of Petrobras in the petrochemical industry, as other major oil companies have done. Furthermore, the sale of a strategically important asset to foreigners is not well-regarded in Brasília.

Novonor controls Braskem with 50.1% of ordinary shares and 38.3% of the total. Petrobras holds 47% of ON shares and 36.1% of the total.

Unipar and J&F Investimentos Also Remain Interested in Braskem

Two other potential buyers, Unipar and J&F Investimentos, continue to express interest in Braskem, with acquisition proposals that foresee different formats and could accommodate Petrobras’ interest in certain operations of the petrochemical company.

The Braskem has been the target of various acquisition speculations, due to its importance in the Brazilian petrochemical market. The company has faced legal issues in Alagoas due to ground subsidence around its facilities, which has worsened its financial situation and generated billions of reais in debt. Resolving this liability is a task that Apollo will have to address if it wants to close the deal.

Creditor Banks Are Not Pressuring for a Transaction at Any Price and Agreement with Novonor Allows Automatic Extension of the Deadline for Selling the Petrochemical Company

The creditor banks, which hold Braskem shares as guarantees for debts approaching R$ 15 billion, are not reportedly pressuring for a transaction at any price, they added. At the end of last year, Novonor reached an agreement with the banks, which now consists of the automatic extension of the deadline for selling the petrochemical company for periods of 30 days.

In summary, the sale of Braskem remains an unknown, as Apollo awaits a clear signal from Petrobras, which has yet to decide what it will do with its stake in the company. The situation could stretch on for some time, and other potential buyers remain interested in the petrochemical company, which could result in an increase in the sale price.

Apollo Seeks Approval to Move Forward with Braskem Acquisition

Braskem Sale Remains Uncertain as Apollo Awaits Petrobras Signal

Apollo’s Offer Includes 100% of Braskem’s Shares, but No Binding or Non-Binding Purchase Offer Yet

New Government Advocates for Petrobras’ Maintenance in the Petrochemical Industry, and Sales to Foreigners Are Unfavorable in Brasília

Unipar and J&F Investimentos Also Remain Interested in Braskem

Creditor Banks Are Not Pressuring for a Transaction at Any Price and Agreement with Novonor Allows Automatic Extension of the Deadline for Selling the Petrochemical Company

Seven world powers including the US, China, and Russia are spending €22 billion on a reactor in the south of France that aims to confine plasma at 150 million degrees Celsius, ten times the temperature of the Sun’s core, using a magnetic field capable of lifting an entire aircraft carrier.

Elon Musk’s internet comes to mobile: Starlink technology connects smartphones without an antenna via satellite, works even without carrier signal, already costs just US$10 extra in the US, and could arrive in Brazil as an included benefit.

While Brazil has been discussing bullet trains for 16 years, China delivers 5 new high-speed lines in 2026, surpasses 50,000 km of HSR, and moves 1 billion passengers in a single year.

With a wingspan of 152 meters, 76 tires, and a capacity to carry 1,270 tons, the Boeing Pelican was the giant “flying ship” that promised to cross oceans close to the water on an invisible air cushion beneath its wings.

A Chinese factory in Guangdong is assembling a humanoid robot every 30 minutes while Tesla, Figure, and Boston Dynamics still struggle to deliver 10 thousand per year.

While countries spend billions to draw water from the sea, a Nobel-winning scientist creates a container-sized machine that extracts up to 1,000 liters per day from dry air and uses ultrasound to release water in minutes, even in the middle of the desert.

Belgium will sink 23 giant concrete caissons, each weighing 22,000 tons, in the North Sea to build the world’s first artificial energy island 45 km off the coast, forming offshore electrical walls.

Few know, but India has a 36 km wall that surrounds a fort in the mountains and is considered the second largest in the world, behind the Great Wall of China.

Hyundai Creta 2029 appears in new spy shots with a completely revamped design, a more modern digital interior, a larger multimedia center, a more comfortable passenger seat, and electrification finally on the radar.

Former CIA analyst warns that China has already surpassed the US in missiles, electronic warfare, cyber, and military production, transforming the Pacific into a zone without safe spaces while Washington clings to its submarine advantage.

Home-built airplane by a Minas Gerais engineer uses car parts, such as a power window motor for the flaps and a tachometer on the dashboard. The project took six years, and the aircraft has autonomy to fly up to seven hours non-stop.

Apollo Seeks Approval to Move Forward with Braskem Acquisition

Braskem Sale Remains Uncertain as Apollo Awaits Petrobras Signal

Apollo’s Offer Includes 100% of Braskem’s Shares, but No Binding or Non-Binding Purchase Offer Yet

New Government Advocates for Petrobras’ Maintenance in the Petrochemical Industry, and Sales to Foreigners Are Unfavorable in Brasília

Unipar and J&F Investimentos Also Remain Interested in Braskem

Creditor Banks Are Not Pressuring for a Transaction at Any Price and Agreement with Novonor Allows Automatic Extension of the Deadline for Selling the Petrochemical Company

Seven world powers including the US, China, and Russia are spending €22 billion on a reactor in the south of France that aims to confine plasma at 150 million degrees Celsius, ten times the temperature of the Sun’s core, using a magnetic field capable of lifting an entire aircraft carrier.

Elon Musk’s internet comes to mobile: Starlink technology connects smartphones without an antenna via satellite, works even without carrier signal, already costs just US$10 extra in the US, and could arrive in Brazil as an included benefit.

While Brazil has been discussing bullet trains for 16 years, China delivers 5 new high-speed lines in 2026, surpasses 50,000 km of HSR, and moves 1 billion passengers in a single year.

With a wingspan of 152 meters, 76 tires, and a capacity to carry 1,270 tons, the Boeing Pelican was the giant “flying ship” that promised to cross oceans close to the water on an invisible air cushion beneath its wings.

A Chinese factory in Guangdong is assembling a humanoid robot every 30 minutes while Tesla, Figure, and Boston Dynamics still struggle to deliver 10 thousand per year.

While countries spend billions to draw water from the sea, a Nobel-winning scientist creates a container-sized machine that extracts up to 1,000 liters per day from dry air and uses ultrasound to release water in minutes, even in the middle of the desert.

Belgium will sink 23 giant concrete caissons, each weighing 22,000 tons, in the North Sea to build the world’s first artificial energy island 45 km off the coast, forming offshore electrical walls.

Braskem’s new generation tankers will cross over 5,500 nautical miles between the U.S. and Brazil, reduce CO₂ emissions by 30%, and transport naphtha with modern engines, an optimized hull, and a focus on at-sea efficiency on a strategic route.

Weatherford secures offshore contracts in Brazil through 2030 with operations in the Búzios field and Campos Basin.

Oil-bearing rocks: the most oil-rich place on the planet, with more than 30 supergiant fields and 5 billion barrels in each one

The United States releases 53.3 million barrels of oil to try to contain the energy crisis and curb global price increases.

Alert from the world’s largest oil company: blockade in the Strait of Hormuz removes 1 billion barrels from the market and may take time to normalize.

Few know, but India has a 36 km wall that surrounds a fort in the mountains and is considered the second largest in the world, behind the Great Wall of China.

Hyundai Creta 2029 appears in new spy shots with a completely revamped design, a more modern digital interior, a larger multimedia center, a more comfortable passenger seat, and electrification finally on the radar.

Former CIA analyst warns that China has already surpassed the US in missiles, electronic warfare, cyber, and military production, transforming the Pacific into a zone without safe spaces while Washington clings to its submarine advantage.

Home-built airplane by a Minas Gerais engineer uses car parts, such as a power window motor for the flaps and a tachometer on the dashboard. The project took six years, and the aircraft has autonomy to fly up to seven hours non-stop.