Brazilian petrochemical company Braskem SA is denying a report that LyondellBasell Industries LV has made an offer to buy it, according to a filing with Brazil's securities regulator.
If a deal did happen, it would combine two of the largest North American makers of polypropylene resin, and two major global polyethylene suppliers.
Braskem's preferred shares on São Paulo's stock exchange B3 rose nearly 12% on 30 Oct, after The Wall Street Journal reported that LyondellBasell had made an offer to buy the petrochemical manufacturer, which could value it at $11.4bn (€9.7bn). Citing unnamed sources familiar with the matter, the newspaper reported that the talks are at an early stage, and there is no guarantee that they will result in a deal.
Braskem said it "was not addressed by LyondellBasell with any proposed acquisition."
"Braskem management requested clarification from Odebrecht SA, its controlling shareholder, which informed that it is working on alternatives to add value to Braskem and all its shareholders, and reaffirmed its intention to keep Braskem as part of the group's investments," the company said in response to B3's request for explanations for the abrupt rise in its shares.
The petrochemical company has also said that the decision on whether or not to dispose of Braskem shares is up to its shareholders.
Odebrecht, which holds 50.1% of Braskem's voting capital, confirmed via email to Plastics News that it intends to keep Braskem as part of the group's investments.
Neither Petroleo Brasileiro SA (Petrobras), which holds 47% of the voting capital at Braskem, nor LyondellBasell have immediately responded to requests for comment about the story.
Petrobras has included the sale of Braskem in its divestment plan, which aims to raise $21m (€18m) in asset sales by the end of 2018.