SÃO PAULO–J&F, the holding company that controls Brazilian meatpacking giant JBS, has made a generous offer of 10 billion reais to acquire control of chemical company Braskem. The offer aims to buy the credit rights held by five creditor banks of Novonor, the engineering and construction company previously known as Odebrecht.
An Intriguing Proposal
Novonor, which currently owns 38% of Braskem’s total shares (representing 50.1% of voting shares), has used these shares as collateral for a loan, effectively giving control to the creditor banks. While J&F’s offer is being seriously considered, no decision has been reached yet.
Competition Among Potential Buyers
J&F is the third contender vying for control of Braskem. Last month, Unipar Carbocloro offered 35.50 reais per share to acquire a majority of Novonor’s stake in the chemical company. And just a month prior to that, Apollo Global Management and Abu Dhabi National Oil Company (ADNOC) also expressed their interest in acquiring Braskem.
Petrobras’s Stake and First Refusal Rights
While Novonor’s decision to sell its stake to a third party is pending, it’s important to note that Petroleo Brasileiro (Petrobras) currently owns 36% of Braskem and holds 47% of its voting shares. Petrobras also holds the right of first refusal if Novonor decides to proceed with the sale. In light of recent developments, Petrobras has requested access to Braskem’s due diligence information but has not yet made any decisions regarding the sale process.
