Braskem, the largest petrochemical group in Latin America, is embroiled in a tumultuous sale process. Part of the turmoil stems from the company’s own actions. Abusive salt mining practices caused geological damage to a neighborhood in Maceió, the state capital of Alagoas, and forced more than 60,000 people to leave their homes.
The other part of this complex situation revolves around the financial problems of Novonor (formerly Odebrecht), the majority shareholder of Braskem, which is facing financial difficulties as a result of the Operation Car Wash scandal.
This complicated dance also involves the interests of Petrobras and the Lula government.
State of play. The sale of Braskem is currently at a standstill. On September 18, Petrobras (a minority shareholder in the company) and Novonor announced that there was still no decision regarding the sale of control over Braskem.
- To date, three groups have made formal offers to purchase Novonor’s stake in the petrochemical company: Unipar (BRL 10 billion, USD 2 billion), J&F Investimentos (BRL 10 billion), and a partnership between the Apollo fund and ADNOC, the Abu Dhabi National Oil Company (BRL 35 billion).
- Petrobras has the right of first refusal in this transaction, as it holds a minority stake of 36.1 percent of the company’s shares.
- On the same day, September 18, the financial newspaper Valor reported that Apollo had withdrawn from the bid, leaving ADNOC to proceed alone.
By the numbers. Novonor...
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