Tanure’s Bid for Petrochemical Giant Braskem in Jeopardy Over Environmental Liability Impasse
SAO PAULO, Brazil – Brazilian businessman Nelson Tanure’s high-stakes bid to acquire a controlling stake in Latin America’s largest petrochemical firm, Braskem, is on the verge of collapse as a critical deadline approaches without a resolution on a major environmental issue.
Tanure’s exclusive 90-day negotiation period with Braskem’s controlling shareholder, Novonor (formerly Odebrecht), is set to expire on August 21. The primary roadblock is the failure to secure an agreement that would shield new shareholders from liability related to a catastrophic ground subsidence incident in Maceió, a city in northeastern Brazil.
In a written statement to Reuters on Monday, Tanure made his position unequivocally clear. “An agreement with all entities involved in the Alagoas disaster is a sine qua non (condition),” he stated, emphasizing it “especially applies to the non-transfer of criminal and financial responsibility to the new shareholders.”
The environmental disaster in question is linked to Braskem’s rock salt mining activities, which began in the 1970s. In 2019, Brazilian authorities determined the operations contributed to the sinking of ground across five city neighborhoods, forcing the displacement of thousands of residents and creating a long-term liability for the company. Settling this complex case is a non-negotiable term for Tanure’s acquisition offer.
With Tanure’s bid hanging in the balance, rival suitors are positioning themselves for an opportunity. Private equity firm IG4 Capital is reportedly prepared to launch its own bid for Braskem should the exclusivity agreement with Tanure lapse. According to sources familiar with the matter, IG4’s strategy involves consolidating Novonor’s bank debt and converting it into Braskem shares.
The uncertainty surrounding the main acquisition has also cast a shadow on other potential deals. A separate offer from Brazilian chemical company Unipar to purchase Braskem’s U.S. polypropylene plants for approximately $1 billion, made public last week, reportedly lacks the necessary approval from key stakeholders, including Tanure and IG4.
As the August 21 deadline looms, the future ownership of Braskem remains highly uncertain, with its resolution tied directly to the immense legal and financial fallout of the Maceió disaster.
Braskem, Novonor, and IG4 Capital all declined to comment on the matter.
