LyondellBasell Industries has renewed its effort to buy Braskem SA, according to a newspaper report from Brazil.
If a deal happens, it would combine two of the largest North American makers of polypropylene resin, and two major global polyethylene suppliers.
According to 24 May report in Valor Economico, LyondellBasell's offer for a controlling stake in São Paulo-based Braskem values the company at BRL41.5bn (€9.7bn).
A spokesperson at LyondellBasell told Plastics News that the company "does not comment on market rumours or speculation."
The newspaper report says LyondellBasell would buy the stake from Odebrecht SA, which holds 50.1% of Braskem's voting capital. But Odebrecht denied having received a proposal for its stake in Braskem, "and continues to work on alternatives that add value to Braskem and all its shareholders, reaffirming its intention to maintain its presence in the petrochemical sector," according to a statement released by the petrochemical company.
The other major shareholder in Braskem is Petroleo Brasileiro SA (Petrobras), which holds 47% of the voting capital. Petrobras did not respond to a request for comment.
Negotiations between the companies occurred in February, but were suspended in early May, as Odebrecht's focus turned to a refinancing deal it is trying to close with Brazilian banks, according to the newspaper.
The Wall Street Journal reported in October that LyondellBasell had made an offer to buy Braskem, valuing the company at €9.7bn. The companies denied that report.
LyondellBasell, a global leader in the production of polyolefins, made a major acquisition move in February, when it announced a deal to buy Fairlawn, Ohio-based A. Schulman Inc. for $2.5bn (€2.1bn). That deal is scheduled to close in June.