J&F offers BRL 10 billion for control of Braskem – 07/12/2023 – Market

J&F, the Batista brothers’ holding, presented an offer of BRL 10 billion for the shares of Novonor (formerly Odebrecht) in the petrochemical company Braskem, disputed by two other competitors amid pressure from banks to receive a loan of BRL 15 billion.

The 50.1% stake that Novonor holds in the company is disputed by Unipar and the consortium formed by the Apollo fund and the Arab Adnoc. This Monday (10), Petrobras, which is a partner of Braskem, informed that it asked for information about the deal to assess how to position itself.

J&F’s offer was initially publicized by the newspaper “Valor Econômico” and confirmed by Sheet with sources accompanying the negotiations. Sought, the company said it would not comment on the matter.

It is the same value offered by Unipar, which is preferred by Novonor for ensuring that the Odebrecht family group remains with 4% of the company’s capital and, consequently, with one of its only sources of revenue today.

Novonor’s shares in Braskem, however, were given as guarantee for a loan granted by Bradesco, Itaú, Santander, Banco do Brasil and BNDES (National Bank for Economic and Social Development), which have the final word on the future of the petrochemical industry.

Among competitors, the perception is that the new offer is part of a strategy by lenders to increase competition and, ultimately, the value of the business.

According to the report, Novonor argues that an operator linked to the petrochemical sector would be more suitable to take control of the company, which has industrial units in Brazil, Mexico, the United States and Germany.

The Odebrecht family company has been trying to sell its stake in Braskem for years, but the process has been stalled by the group’s own financial difficulties and uncertainties regarding compensation for the environmental disaster in Maceió, which caused the subsidence of the ground in five neighborhoods.

This Tuesday (11), the state government released a note requesting that the amount of compensation be included in the negotiations. The text says that “it makes no sense” for the State “to be excluded from the negotiations, given the public interest involved by thousands of inhabitants”.

Directly involved in the process, BNDES and Petrobras would be waiting for guidance from the government on the subject, recently stated the president of the development bank, Aloízio Mercadante.

Sources close to the direction of the state-owned company say that there is a desire to expand the participation in the petrochemicals, but in the communiqué of Monday the company claims not to have taken any decision.

Unipar’s proposal conditions the operation to the maintenance of Petrobras as a partner. The Apollo/Adnoc consortium initially wanted to take over the entire company, but already admits to buying only Novonor’s slices.

Petrobras has the right to increase its participation by offering a proposal similar to that of the winner or to sell its shares for the same price paid to those of Novonor. The possibility of renationalization is seen as remote by the market.

“Decisions on investments and divestments are based on careful analyzes and technical studies, in compliance with governance practices and applicable internal procedures”, said the state-owned company, in Tuesday’s statement. Unipar declined to comment on the matter.