LyondellBasell near Braskem Deal after all?

LyondellBasell CEO Bob Patel either is trying to build suspense for an announcement that it has sealed a deal with Brazilian construction group Odebrecht about acquiring its 38.3% share in chemical producer Braskem or just wants to keep the Netherlands-based, Texas-run petrochemicals giant in the news.

Following the recent meeting of the Latin American Petrochemical Association in Cancun, Mexico, in which reports quoted Patel as suggesting a deal was still rather remote, the news agency Reuters reported on Nov.16 that LyondellBasell is close to presenting a binding offer to acquire control of Braskem.

Reuters said also that the Houston petrochemicals group is discussing an extension of a long-term naphtha supply contract with Braskem’s other major shareholder Petrobras, which could be “pivotal” to valuing its 36.1% stake in the company.

Petrobras reportedly is still discussing whether to sell its full stake in the chemical producer or hold onto some of it shares. According to Reuters, talks between the sides are expected to conclude the next few days.