In an official statement, Brazilian oil and gas giant Petrobras told investors on Thursday that its board of directors approved the sale of up to 100 percent of its preferred shares of Braskem, the biggest petrochemical company in Latin America. The move will be made by way of a share offering with conglomerate Novonor — the new name of the Odebrecht civil construction group.
Petrobras’s intention to divest from Braskem is not new. In August, the oil major said it had hired JPMorgan to give advice on the sale process. Shares of Braskem are expected to migrate to the “Novo Mercado,” a part of the São Paulo stock exchange with higher standards for corporate governance.
Braskem faces multiple environmental challenges. In July, The Brazilian Report revealed the extent of damages caused by Braskem’s abusive salt-mining practices in the northeastern city of Maceió. The report won the “best news or event feature video” prize at the 2021 EPPY Awards.
On December 9, shares of Braskem plunged a whopping 20 percent, after Petrobras said it had yet to decide when and how to proceed with the proposed sale of its stake in the petrochemicals producer.