The government of Brazil’s President Luiz Inácio Lula da Silva is working towards a corporate transaction that could potentially facilitate the financial recovery of Novonor (formerly known as Odebrecht) and bolster Petrobras’ reentry into the chemical industry via part-nationalization of petrochemical company Braskem.
Braskem is a Brazilian petrochemical company headquartered in São Paulo.
The largest petrochemical company in Latin America has become a major player in the international petrochemical market.
Novonor was the contractor most prominently involved in the Lava Jato operation.
Many of its executives turned whistleblowers, providing crucial evidence in now-overturned convictions against Lula.
Braskem’s primary stakeholders are Petrobras, holding 36%, and Novonor, with 38%, though the state company does not control operations.
Novonor has been trying to sell its stake in Braskem to Unipar, a private petrochemical firm, to improve its accounts affected by the Lava Jato scandal.
The proposed deal would divide Braskem’s assets, with the state company, Petrobras, resuming direct operations in the petrochemical industry.
Unipar has proposed a non-binding offer for Novonor’s controlling interest in Braskem.
This deal would resolve Novonor’s US$14 billion bank debt backed by Braskem’s shares, with Unipar intending to pay US$10 billion to the creditor banks and renegotiate the remaining US$4 billion.
Unipar’s proposal has not included negotiations regarding Petrobras’ 36% Braskem stake.
The ongoing discussion, supported by Lula’s government, suggests Petrobras retain part of Braskem’s assets equal to its 36% share.
After over a decade, this move will reestablish Petrobras’ control over the petrochemical sector, aligning with Lula’s belief in Petrobras’ need to return to oil refining.
This proposed splitting of Braskem is designed to prevent potential challenges by the Administrative Council of Economic Defense (Cade), as Unipar’s acquisition of Braskem could lead to excessive market concentration.
With information from Poder360