Odebrecht Fails in Attempt to Sell Braskem

The Negotiations Were Suspended by the Odebrecht Group After Failing to Reach an Agreement with the Dutch Group LyondellBasell.

Odebrecht has just announced today (06/04) that it has ended negotiations with the Dutch LyondellBasell regarding the sale of its stake in Braskem.
The company has been negotiating its stake in Braskem for about a year, since June of last year, and the intention of the sale was to stabilize Odebrecht’s financial situation.

Odebrecht issued a statement indicating that it will continue to seek alternatives that add value to the group and its shareholders.
“Odebrecht, as the controlling shareholder of Braskem, will remain committed to identifying and pursuing alternatives that add value to its stake in the company, in line with the group’s financial stabilization strategy”, the statement said.

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It is commented in the market that the failure of the negotiations was due to the complicated moment of legal and financial instability that the group is going through.

What the Dutch Company Said

The CEO of LyondellBasell, Bob Patel, stated that it would have been a good deal considering what the companies represent in terms of the same line of business in the market, but that the decision to halt negotiations was made by the company after careful analysis.

The negotiations were being monitored by Petrobras, which is Odebrecht’s partner in Braskem. Petrobras owns 36.1% of the shares and 47% of the voting capital, while Odebrecht owns 38.3% of the shares and 50.1% of the voting capital.
According to Reuters, Petrobras’s expectation was to sell its stake in Braskem to the same buyer as Odebrecht’s stake.

Since 2015, Odebrecht has been exiting various businesses in an attempt to raise cash after being implicated in corruption cases through the Lava Jato operation.

Last Friday (05/31), Braskem signed its leniency agreement with the Office of the Comptroller General (CGU) and the Attorney General’s Office (AGU), committing to return R$ 2.87 billion to the coffers of the union and Petrobras by January 2025.

Atvos, a subsidiary of the group and the second-largest ethanol producer in the country, filed for bankruptcy protection last week.

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