Energy Adnoc ‘in talks’ to buy Brazilian petro firm Braskem By Sarah Townsend May 9, 2023 Reuters/Amanda Perobelli Brazil's petrochemical company Braskem is said to be receiving interest from bidders including Adnoc ‘Non-binding’ $7.5bn offer sent to controlling shareholder Novonor Adnoc looking to expand operations and investments overseas Braskem this week posted 95% Q1 net profit drop Abu Dhabi National Oil Company (Adnoc) and US-based asset manager Apollo Global Management are said to have submitted a joint bid of 37.5 billion reais ($7.5 billion) to acquire São Paulo-headquartered Braskem. Discussions are in the early stages, Bloomberg reported, citing sources close to the potential deal. AGBI has contacted Adnoc for comment. The state-owned oil giant is looking to expand its operations and interests overseas. It set up a dedicated business unit for this purpose in January. Braskem is one of the world’s largest petrochemicals producers, with more than $3.8 billion of revenues as of the end of March. Adnoc taking on the world in renewable energy push Brazil steps up efforts to engage UAE in free trade talks The company on Monday unveiled its financial results for the first quarter of 2023, posting a 95 percent plunge in net profit to 184 million reais ($36.7 million), and a 25 percent drop in revenues from the year-earlier period. In its Q1 financial statement, Braskem noted that revenues were hit largely by falling petrochemical spreads compared to a year earlier. Poorer performance in Braskem’s major markets of the US and Europe had also dented revenues and profits, the company said. Braskem’s recurring earnings before interest, taxes, depreciation and amortization (Ebitda) stood at 1.06 billion reais for the quarter – down 78 percent compared to the same period in 2022. Adnoc and Apollo’s offer of 47 reais a share was more than double Braskem’s market value before an initial report on the proposal in a Brazilian newspaper pushed up shares last week, Bloomberg said. The offer to Braskem’s controlling shareholder Novonor, which shares control of Braskem with Brazilian state-run oil giant Petrobras, is said to be non-binding and will be “analysed alongside other interested parties”.