LyondellBasell drops its bid to purchase Braskem

After more than a year of negotiations, petrochemical giant LyondellBasell Industries NV says that it has ended talks with Braskem SA’s controlling shareholder, Brazilian construction conglomerate Odebrecht SA, to acquire Braskem.

“The combination of LyondellBasell and Braskem is compelling because of the companies’ complementary strengths, product portfolios and operational footprints,” LyondellBasell CEO Bob Patel said in a statement.”However, after careful consideration, we jointly decided not to pursue the transaction.”

“We remain focused on advancing our disciplined, value-driven growth strategy,” Patel added.

Odebrecht is Braskem’s controlling shareholder with a 38 per cent stake and the majority of voting stock. Brazilian state-controlled oil company Petroleo Brasileiro SA holds a 36 per cent stake. Headquartered in São Paulo, Brazil, Braskem is said to be the largest petrochemical company in Latin America.

Headquartered in London and Houston, LyondellBasell sells products into more than 100 countries and is said to be the world’s largest producer of polypropylene compounds and the largest licensor of polyolefin technologies.