Chemical and plastics giant LyondellBasell Industries has ended discussions with Braskem majority shareholder Odebrecht SA concerning the potential acquisition of the Brazilian petrochemicals firm.
"The combination of LyondellBasell and Braskem is compelling because of the companies' complementary strengths, product portfolios and operational footprints. However, after careful consideration, we jointly decided not to pursue the transaction," LyondellBasell CEO Bob Patel said in a June 4 statement.
Citing unnamed sources, Reuters reported in March that negotiations over the potential $11 billion deal for Braskem had slowed due to "issues linked to a delayed U.S. filing and a supply contract for naphtha with Petrobras."
The two sides had been in talks over the sale of Braskem for more than a year.
"We remain focused on advancing our disciplined, value-driven growth strategy. In addition, we intend to expedite our share repurchase program, which currently allows for the repurchase of up to 37 million of our outstanding shares," Patel said, adding that the company would maintain "optionality for [merger and acquisition] opportunities" while executing the significant share repurchases.
LyondellBasell, with headquarters offices in Houston and London, reported a significant 25.3 percent decline in in first quarter earnings at $1.4 billion on 10 percent lower sales of $8.7 billion.