Braskem's controlling stake sale is approved by Brazil's antitrust watchdog

Braskem announced July 17 that Brazil's antitrust regulator approved the sale of the company's controlling stake, owned by Novonor, to Brazilian tycoon Nelson Tanure.

The final decision regarding the transaction is subject to a legal deadline of 15 days, after which parties involved in the negotiation, such as petrochemical giant Petrobras, can file further disclosures.

Tanure's investment fund, Petroquímica Verde - Multiestrategia, first expressed its intention to become Braskem's primary stakeholder on May 23.

Novonor, which is currently under judicial reorganization, owns a controlling stake of 38.3% in Braskem, including 50.1% of its voting share capital, alongside Petrobras, which owns 47%.

Braskem remains immersed in a political crisis related to a land sinking at an exploration area in the city of Maceio in Brazil's northeast. The event led to a salt mining plant shutdown and the displacement of thousands of inhabitants in the area. Brazil's Parliament is also investigating Braskem's high-level executives in relation to this incident.

Novonor has been attempting to sell Braskem's shares for years.

In May 2024, Abu Dhabi National Oil Co. backed out of the due diligence process to acquire a controlling stake in Braskem.

A week later, Braskem's CFO at the time said Petrobras's full acquisition of the company would not be ideal.

The company reported on May 12 a gross debt of $1 billion in the first quarter, stable from the fourth quarter of 2024 and 4% higher than the same year-ago quarter.

Meanwhile, domestic resin sales in Brazil dropped 4% year on year in Q1 2025 to 807,000 mt, Braskem said on April 29.

Protectionist measures, such as an import duty increase from 12% to 20% on chemicals and polymers and a dumping investigation on US and Canadian polyethylene imports to Brazil, both articulated by Braskem, have not improved the company's market share in the domestic market.

Platts, part of S&P Global Energy, last assessed July 16 the HDPE film CFR Brazil price at $975/mt, while the domestic price was assessed at $1,847/mt, amid a decrease in polyethylene and polypropylene imports in Brazil throughout the first half of 2025.

The company's production costs remain elevated in Brazil's domestic market compared with imported material. According to Braskem's Q1 2025 earnings report, the total projected investment to reduce naphtha-based production in Brazil is estimated at $404 million.

Another $484 million in investments is expected from the federal government's investment program in the chemical industry.