Adnoc ends talks to buy stake in Brazilian petchem producer 

Abu Dhabi state-owned energy company Adnoc has ended talks to buy a controlling stake in Brazilian petrochemical company Braskem.

“Adnoc International Limited has no interest in continuing the process of analysis and negotiations with Novonor on the potential transaction,” the São Paulo-listed company said in a bourse filing on Monday.

Following the disclosure, Braskem shares dropped more than 16 percent to their lowest level since February, Reuters reported.  

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Adnoc had revised its non-binding offer last November of 10.5 billion reais ($2.1 billion) to acquire Novonor’s 38.3 percent stake in Braskem.

Brazil’s local newspaper, Valor Economico, reported earlier that Kuwait Petroleum Corporation’s unit, Petrochemical Industries Corporation, is considering a potential bid.

• Brazil’s Braskem confirms takeover bid from Adnoc
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• Saudi Arabia and Abu Dhabi bet on crude-to-chemicals

Braskem reported a net income of $935 million in 2023 and a recurring Ebitda of $743 million. The company’s liquidity is $3.6 billion, providing cover for over 70 months.

The Financial Times reported this week that Mubadala Capital will invest $13.5 billion in biofuels in Brazil. 

Its chief investment officer and head of Brazil, Oscar Fahlgren, said the scheme to produce renewable diesel and aviation kerosene using mainly non-food plant matter is “a very important capital project”.