Petrobras sees negotiation for Braskem far from over – 07/19/2023 – Market

The management of Petrobras estimates that the conclusion of negotiations on the purchase of control of the petrochemical Braskem should only be for 2024, given the complexity of the economic analysis of the asset, which is currently disputed by three large groups.

The slice is being sold by Novonor, formerly of Odebrecht, which already has proposals from Unipar, J&F and a consortium formed by the Apollo fund and by Adnoc. Braskem’s partner, Petrobras is evaluating the operation, but has not yet decided how to position itself.

“The subject is very hot in the media, it is natural, as it is a company of excellence. But in my view it is far from being resolved, the banks have not pronounced, nor the creditors, nor Novonor has pronounced”, said the Financial Director of Petrobras, Sérgio Caetano Leite, at breakfast with journalists.

Petrobras can decide either to sell its stake at the same price accepted by Novonor or to buy the former Odebrecht stake at the highest bidder price. The final decision, however, will be taken under the guidance of the federal government, the majority shareholder of the state-owned company.

Leite defended that the petrochemical sector is now a priority for oil companies that hope to survive the energy transition. Petrobras also sees synergies in its operations with those of Braskem, which has industrial units in Brazil, the United States and Mexico.

So far, the best preliminary offers for control of the company are R$ 10 billion, proposed by both J&F and Unipar. The confirmation of the proposals, however, still depends on the “due diligence” process, which consists of the detailed evaluation of the numbers of a company.

For Leite, this process will take a minimum of six months. Afterwards, Petrobras will still need to analyze the offers to define whether it exercises the preemptive rights for the shares or the sale of its slice at the same price, a procedure known as “tag along”.

Questioned about the deal, the president of Petrobras, Jean Paul Prates, said that the state company will be the last to manifest itself. “It’s part of the strategy of having the right of preference. We have the privilege of being the last to say something,” he said.

The return to the petrochemical sector has already been included in Petrobras’ strategic guidelines under PT management. At breakfast this Wednesday (19), the company’s management announced that it is studying investment in a plant in Itaboraí, in the metropolitan region of Rio de Janeiro.

The idea is to use the large volumes of ethylene that will be generated by the treatment of natural gas from the pre-salt that begins to arrive in the area of ​​​​the former Comperj (Petrochemical Complex of Rio de Janeiro) from 2024.

Prates also stated that in November the company will carry out the first test of a new technology for the production of petrochemicals from vegetable oils in Rio Grande do Sul, in an attempt to inaugurate a new less polluting route in the production of plastics.