LyondellBasell Industries NV said it has terminated discussions with Odebrecht SA regarding a potential acquisition of the construction company's controlling stake in Brazil-based Braskem SA.
The two companies initiated the discussion in June 2018 to acquire the 38% stake Odebrecht holds in the Brazilian manufacturer of thermoplastic resins.
However, Braskem could not get a long-term naphtha supply contract with Petróleo Brasileiro SA - Petrobras ratified, which was a base for the deal's value, Reuters reported in January. The deal will expire in December 2020. Petrobras holds a 36% stake in Braskem.
Issues linked with Braskem's annual report filing with the U.S. Securities and Exchange Commission further delayed the deal, which was a prerequisite for the deal for LyondellBasell's board, Reuters said.
Braskem ultimately declared in May that the NYSE will be delisting its shares due to its inability to file the 2017 annual report.
"After careful consideration, we jointly decided not to pursue the transaction," the parties to the deal said in a news release.