Government Plans State Intervention to Save Novonor, Formerly Odebrecht, with Nationalization of Part of Braskem

According to Portal 360, President Luiz Inácio Lula da Silva’s (PT) government is considering the possibility of nationalizing part of the petrochemical Braskem to save Novonor, formerly Odebrecht. The operation is connected to Unipar’s proposal to buy Braskem, splitting the company and allowing Petrobras to return to the refining sector.

Novonor was the contractor most linked to the Lava Jato Operation, which began in 2014 and investigated one of the largest corruption schemes in the country. Dozens of company executives made plea bargains, providing information that resulted in evidence for convictions, many of which were later annulled. The company suffered a significant financial impact after the operation and has been trying for years to recover its finances.

Today, Braskem‘s main partners are Petrobras, which holds 36% of the shares, and Novonor, which holds 38%. However, the state-owned company does not control operations, and Novonor has faced difficulties in settling its accounts after the impact of Lava Jato.

Unipar, a private petrochemical company from Bahia, submitted a non-binding proposal to buy the former Odebrecht’s stake in Braskem. The proposal would allow Unipar to settle Novonor’s debt of R$ 14 billion with the banks, which hold Braskem’s shares as collateral. Unipar proposes to pay R$ 10 billion to the creditor banks and renegotiate another R$ 4 billion directly with financial institutions, settling Novonor’s accounts.

The Proposed Nationalization by the Government Would Allow Braskem to Split Its Assets and Petrobras to Operate Directly in the Petrochemical Sector.

A solution to split Braskem aims to prevent the purchase of the company by Unipar from being questioned by the Administrative Council for Economic Defense (Cade), ensuring the legality of the business.

There are different positions on the nationalization proposal. While some see the measure as a potential state interference in the economy, others argue that it would be necessary to save Novonor and assist the petrochemical sector.

Lula has supported Petrobras’ return to the chemical sector, believing that the state-owned company needs to return to refine oil. The situation of Novonor is delicate, and without an injection of capital, it would be difficult for the company to return to what it was in the past.

Therefore, the nationalization proposal can be seen as an attempt to save the company and keep the chemical sector active. However, it is still unclear what the outcome of this complex negotiation will be, and much discussion is ongoing about the market possibilities and political impacts that such a move may generate.