Braskem’s Future at Stake: Petrobras and Investors Vie for Control

Braskem, Brazil’s largest petrochemical company, faces a decisive moment as Petrobras and private investors compete for control. The company’s fate will shape Brazil’s industrial future, with implications for jobs, investment, and the national economy.

Novonor, formerly known as Odebrecht, currently controls Braskem but is under pressure to sell its 50.1% voting stake. Novonor pledged these shares as collateral for R$15 ($2.7) billion in loans during a previous financial crisis.

Now, the value of its stake has fallen, and creditors expect repayment. Brazilian businessman Nelson Tanure has entered exclusive negotiations with Novonor, seeking to acquire its controlling interest.

However, four major banks—Bradesco, Itaú, Banco do Brasil, and Santander—hold veto power over any deal, since the shares serve as loan collateral.

The state development bank BNDES has also proposed consolidating Braskem’s shares into a private equity fund to stabilize the company before a sale.

Petrobras, the state-controlled oil giant, owns 36.1% of Braskem’s capital and 47% of its voting shares. In addition, Petrobras holds a right of first refusal on Novonor’s stake, allowing it to match any offer from outside buyers.

Petrobras Seeks Greater Influence at Braskem Amid Major Expansion

CEO Magda Chambriard has made clear that Petrobras wants greater management influence at Braskem but does not seek to nationalize the company.

She insists that Petrobras’s expertise in oil and petrochemicals can improve Braskem’s performance and benefit the broader Brazilian industry. Braskem is investing R$4.3 billion ($760 million) to expand its Duque de Caxias complex in Rio de Janeiro.

This project, the largest in Brazil’s petrochemical sector in 15 years, aims to increase polyethylene production by 230,000 tons per year by 2028. The expansion will create 7,500 jobs and strengthen the local economy.

Braskem’s shift from naphtha to natural gas as a feedstock aims to reduce costs and support Brazil’s energy transition. Despite these investments, Braskem faces significant challenges.

The company carries R$18 billion in liabilities from geological damage in Maceió, Alagoas, and remains exposed to global market volatility and high debt. Braskem reported a first-quarter 2025 profit of $114 million, reversing previous losses.

The outcome of this ownership struggle will determine who steers a strategic sector of Brazil’s economy. Control over Braskem means influence over a company that underpins much of Brazilian manufacturing, with far-reaching effects for workers, suppliers, and the country’s industrial competitiveness.

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