LyondellBasell Makes Takeover Approach to Braskem
31 October 2017 - 4:46AM
Dow Jones News
By Dana Mattioli and Dana Cimilluca
LyondellBasell Industries NV has made a takeover approach to
Braskem SA, according to people familiar with the matter, eyeing a
deal that could value the Brazilian petrochemical company at well
over $10 billion.
The talks are at an early stage, the people said, and there is
no guarantee there will be a deal.
Should there be one, it would be substantial: Braskem on Monday
had a market value of about 37 billion Brazilian real ($11.4
billion) and nearly as much debt. LyondellBasell had a market value
of about $40 billion.
It would also be the second-largest Brazilian M&A deal,
according to Dealogic. There has only been one double-digit-billion
dollar deal in the country, according to the data provider's
records: a $43 billion acquisition of oil-and-gas assets by
Petrobras, announced in 2010.
LyondellBasell and Braskem operate in similar product lines but
different geographies. Products include polyethylene, which is used
in everyday items such as garbage bags and milk jugs. A deal would
also give LyondellBasell access to faster-growing Latin American
markets.
Write to Dana Mattioli at dana.mattioli@wsj.com and Dana
Cimilluca at dana.cimilluca@wsj.com
(END) Dow Jones Newswires
October 30, 2017 13:31 ET (17:31 GMT)
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