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Braskem US assets may face resistance from potential buyers

Three people familiar with the talks said that groups vying to control Brazilian petrochemical company Braskem would likely resist any sale of its U.S.-based assets. Brazilian chemical company Unipar has been in discussions to buy Braskem's plants in Texas and Pennsylvania for $1 billion. This was reported by the Brazilian newspaper O Globo on Thursday.

Braskem confirmed to Unipar on Friday that they are discussing the sale unspecified Braskem properties. On Friday, Braskem shares rose about 3% while Unipar's shares jumped nearly 9% at the Sao Paulo Stock Exchange. Sources, who spoke on condition of anonymity, said that neither party vying for a controlling stake of Braskem is interested in selling its U.S. assets. One of the sources stated that Brazilian businessman Nelson Tanure who has been in exclusive talks for 90 days with engineering group Novonor (formerly Odebrecht) opposes this idea. One source says that IG4 Capital, a private equity firm, has a competing plan to swap Novonor's debt for Braskem when Tanure's 90-day exclusive talks with the engineering group expires this month. They would likely also oppose a deal for the U.S. facilities without a comprehensive future plan, the other source added.

According to a third party, a sale of assets in the United States would also be contrary to Braskem’s stated strategy. Braskem, Unipar and IG4 declined to give any further information on the assets. Tanure and IG4 declined comment. Braskem CEO denied on Thursday that the company was interested in selling its U.S. assets. Luciana Magnalhaes, Brad Haynes and Kirby Donovan edited the article.

(source: Reuters)