Major global plastics, chemicals and refining company, LyondellBasell, has announced that it has ended discussions with Odebrecht SA about the potential acquisition of Braskem.
In a statement released by LyondellBasell, CEO Bob Patel, said: "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. We want to thank the teams at Odebrecht and Braskem for their cooperation during the entire process."
Patel added that the company still intends to expedite a proposed share repurchase programme, covering 37 million outstanding shares.
“Our strong cash flows, ample liquidity, and healthy balance sheet allow us to deliver a growing, top-quartile dividend, advance organic growth, and maintain optionality for M&A opportunities while executing these significant, opportunistic share repurchases," said Patel.
In late May, Reuters reported that the board of Brazilian-based Braskem SA had approved a R$410m ($101m) settlement with authorities related to the company’s involvement in the ‘Lava Jato’, or Car Wash corruption case.
The Car Wash investigation is related to a series of corruption cases which involved inflated government contracts being given to Brazilian and international businesses.
A series of these cases cover government deals with Petrobras, the national oil company which, together with engineering group Odebrecht, are owners of Braskem.
In 2016, Petrobras pleaded guilty in US Federal court to conspiring to violate US bribery law. As a result, the company was ordered to pay $3.6bn to US, Swiss and Brazilian authorities, the largest ever penalty in a foreign bribery case.
Braskem produces a wide range of polymer products, including a series of biopolymers for product packaging. The company now delivers biopolymers based on sugar cane proteins to more than 150 companies.