Yahoo Finance Petrobras Waits on Offers From Braskem’s Other Suitors, CEO Says
(Bloomberg) -- Brazilian state-controlled oil producer Petrobras is waiting for other companies to make bids for a stake in petrochemicals producer Braskem after Abu Dhabi National Oil Co. pulled out of the running.
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Petroleo Brasileiro SA, as it is formally known, could also exercise preferential rights for the stake, Chief Executive Officer Jean Paul Prates said in Houston on Monday. Shares in Braskem SA tumbled earlier in the day after Adnoc dropped its bid for a stake in the Brazilian chemicals giant, a development that signals the stop-and-start sales process will drag on even longer.
“There are other companies looking, doing their due diligence,” Prates said during an interview. “We have our due diligence complete already. We’re ready to move. If we need to do an option, we will do it.”
Demand for plastics, paints and car parts made from the petrochemicals that Braskem produces is expected to increase in Latin America, and Braskem facilities in Brazil and other countries can be expanded. Still, it has been a challenge for Novonor SA, the financially strained controlling shareholder, to lock in a buyer for its stake.
Read More: Braskem Sinks on Bleaker Sale Outlook After Adnoc Drops Bid
Prates said that Petrobras would be eager to work together “half and half” with a new “financially strong” partner. He also said that Petrobras has “other things” going on with Adnoc.
On Monday, Braskem published the contents of a letter it received from Novonor related to Adnoc’s decision to pull out of the potential deal, which it had announced in November. Novonor said it remained fully engaged in the sale process, according to the correspondence.
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