By Newsfeed/Reuters
RIO DE JANEIRO, BRAZIL – Chemical maker LyondellBasell Industries NV said on Tuesday, June 4th, that it had ended talks with Braskem SA’s controlling shareholder Odebrecht relating to the proposed acquisition of the São Paulo based petrochemical giant.
Reuters reported in March that talks with Brazilian conglomerate Odebrecht SA over a potential US$11 (RS$44) billion deal for Braskem had slowed due to issues linked to a delayed U.S. filing and a supply contract for naphtha with Petrobras.
Odebrecht, which has been trying to restructure itself after being implicated in Brazil’s sweeping “Car Wash” scandal, had been discussing the deal with Lyondell for over a year and a half.
LyondellBasell said it ended talks with Odebrecht SA “after careful consideration”, but did not elaborate further.
In May, Braskem said the New York Stock Exchange would delist its U.S.-listed shares after it failed to file its 2017 annual report on time.
Lyondell’s board had decided that it would not conclude the deal before Braskem files its 2017 20-F annual report with the U.S. Securities and Exchange Commission, one source previously told Reuters.
Braskem is the largest petrochemical company in Latin America and has become a major player in the international petrochemical market (eighth largest resin producer worldwide).
Shares of LyondellBasell were up 3.4 percent while shares of Braskem SA at the B3 exchange crashed more than 16 percent.