LyondellBasell Ends Talks to Buy Brazil's Braskem -- Update

   By Colin Kellaher 
 

LyondellBasell Industries NV (LYB) on Tuesday said it has ended talks with Brazilian construction firm Odebrecht SA. about the potential acquisition of petrochemical company Braskem SA (BRKM5.BR).

The disclosure sent American depositary receipts in Braskem down 17% to $17.65 in morning trading. LyondellBasell shares rose nearly 3% to $79.82.

LyondellBasell, a Netherlands-based producer of polymers and chemicals with a big presence in Houston, last June said it was in talks with Odebrecht, which controls 51% of Braskem's voting shares, about a possible deal.

LyondellBasell said that while the potential combination was compelling, the companies opted not to pursue a transaction "after careful consideration."

Brazilian state oil firm Petroleo Brasileiro SA (PBR), known as Petrobras, controls 47% of the voting shares of Braskem, which has a market capitalization of about $8 billion.

LyondellBasell said it will focus on its disciplined growth strategy and expedite its share-repurchase program. The company last week said its shareholders approved the repurchase of up to 10% of its roughly 370 million shares outstanding over the next 18 months.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

June 04, 2019 10:20 ET (14:20 GMT)

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