LyondellBasell drops bid to acquire Braskem

Dutch chemical firm LyondellBasell says it has ended discussions with Odebrecht S.A. concerning the potential acquisition of Brazilian petrochemical firm Braskem. Odebrecht S.A. is the controlling shareholder of São Paulo-based Braskem.

“The combination of LyondellBasell and Braskem is compelling because of the companies’ complementary strengths, product portfolios and operational footprints. However, after careful consideration, we jointly decided not to pursue the transaction. We want to thank the teams at Odebrecht and Braskem for their cooperation during the entire process,” said LyondellBasell CEO Bob Patel.

According to a Reuters report negotiations over the potential US$11 billion deal had slowed down due to issues linked to a delayed US filing and a supply contract for naphtha with oil/gas company Petrobras.

Patel added, “We remain focused on advancing our disciplined, value-driven growth strategy. In addition, we intend to expedite our share repurchase program, which currently allows for the repurchase of up to 37 million of our outstanding shares. Our strong cash flows, ample liquidity, and healthy balance sheet allow us to deliver a growing, top-quartile dividend, advance organic growth, and maintain optionality for M&A opportunities while executing these significant opportunistic share repurchases.”

Talks on the deal started 18 months ago.