LyondellBasell/Braskem talks are off

LyondellBasell has ended acquisition talks with Odebrecht, the owner of a majority share of Braskem. An acquisition would have combined two of the world’s largest petrochemical makers. Lyondell had $39 billion in revenues in 2018, while Braskem had nearly $16 billion in sales. Moreover, with the purchase, Lyondell would have added Latin America’s largest polyolefins business to its own strong business in North America and Europe. The companies first announced merger talks nearly a year ago. Rumors of negotiations between the companies stretch back to 2017. “The combination of LyondellBasell and Braskem is compelling because of the companies’ complementary strengths,” Lyondell CEO Bob Patel says. However, he didn’t say what dragged out and ultimately scuttled the talks.