ADNOC and Petrobras are expected to complete their processes within three weeks

02/16/2024

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Sultan Al Jabber — Foto: Hollie Adams/Bloomberg

The two due diligences running in parallel at Braskem, one by the Abu Dhabi National Oil Company (ADNOC) and the other by Petrobras, have made progress and should be completed in two or three weeks, Valor has learned. As a result, the Braskem sale process could enter a new phase, according to sources.

The due diligence of Petrobras, the Brazilian petrochemical company’s second-largest shareholder with 36.1% of the total capital, started before that of ADNOC, but both “continue,” a source familiar with the matter said. This phase is expected to be completed by early March.

Before making its own bid for Braskem, ADNOC was in competition with management company Apollo for the asset, and a preliminary due diligence was even launched. Apollo withdrew from the negotiations between August and September last year after encountering opposition to its participation in the deal.

The audit process was discussed at a meeting this week between Petrobras CEO Jean Paul Prates and ADNOC President Sultan Al Jabber, who is also the United Arab Emirates Minister of Industry and Technology. Mr. Prates was in Abu Dhabi, the capital of the United Arab Emirates.

On the social network X, Mr. Prates said Thursday (15) that the meeting with Mr. Al Jabber was a “continuation of the negotiations that began last year” for the joint analysis of opportunities in offshore natural gas exploration and production, refining, petrochemicals and fuels, as well as the analysis of Braskem’s accounts.

While Petrobras evaluates whether to stay in the petrochemical company, increase its stake, or sell its shares, ADNOC made a new non-binding offer in November to buy control of Braskem held by the former Odebrecht for R$37.29 per share, or R$10.5 billion. Novonor’s total stake is 38.3%.

The proposal was also presented to the parent company’s creditors—Bradesco, Itaú Unibanco, Santander, Banco do Brasil, and Brazilian Development Bank (BNDES)—who hold Braskem shares as collateral for debts of around R$14 billion.

For the sale of the petrochemical company to proceed, ADNOC must submit a binding offer (with a commitment to buy) after due diligence. At that point, Petrobras will be able to indicate its position in the transaction. ADNOC and Novonor declined to comment.

In another post on X, Mr. Prates said the visit to the Arabian Gulf countries will end in the next two days in Qatar, where the Petrobras delegation will meet with Qatar Energy and visit one of the largest liquefied natural gas (LNG) terminals in the world.

Petrobras has been negotiating with the Mubadala Fund for the re-entry of the Mataripe refinery, a step that the market sees as a revision of the opening of the fuel market. It has also commented on a possible return to fuel distribution, without implying a buyout of Vibra Energia, formerly BR Distribuidora.

Earlier in the day, Mr. Prates met with executives from Aramco, where Petrobras executives discussed the possibility of joining forces “in designing a new vision for the fuel and lubricants retailing and distribution market.” According to Mr. Prates, after meeting with Aramco President Amin Nasser, agreements and visits between Petrobras and Aramco will be scheduled by March.

*Por Stella Fontes, Fábio Couto — São Paulo, Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/