Braskem announces an investment agreement with Petrobras, Petroquisa and Odebrecht S.A. aiming at the integration at Braskem of petrochemical assets held by Petrobras and Petroquisa, which shall result in a global-scale and more competitive company, with a strong strategic alignment between Braskem and Petrobras. Such movement represents a new and important phase in the Brazilian petrochemical industry consolidation process with the purpose to strengthen the sector through more integrated and competitive companies under the private sector’s leadership, in conditions to meet the Brazilian market’s accelerated growth and exert a relevant role in the international market.

 "This effort ranks Braskem as a standout competitor in the global petrochemical industry and with a strong cash generation capacity, which shall allow it to accelerate its growth and internationalization plans", said José Carlos Grubisich, the Braskem’s President. "Moreover, the agreement with Petrobras sets a new corporate governance paradigm within the Brazilian business context", added Grubisich.

The corporate governance model agreed upon consolidates the principle of professionalism in management and the relevant shareholders’ proportional interest in the Supervisory Board. With this operation, the joint interest of Petrobras and Petroquisa in Braskem shall increase from 8.1% to 30% of the voting capital and from 6.8% to 25% of the voting capital, confirming the Petrobras’ role as a minority shareholder relevant in the company.

Under the agreements’ terms, Braskem shall integrate within up to six months the interests held by Petrobras and Petroquisa mentioned below based on the proportion on the total capital: Copesul (37,3%), Ipiranga Petroquímica (40%), Ipiranga Química (40%) and, optionally, Petroquímica Triunfo (up to 100%), situated in the Petrochemical Complex of Triunfo-RS, and Petroquímica Paulínia (40%), situated in Paulínia-SP. Once confirmed the integration of Petroquímica Triunfo, Braskem shall add a capacity of 160 thousand tons per year of polyethylene to its products portfolio.

The agreement is in line with the purpose to widen the competitiveness of the whole petrochemical and plastics production chain in the country, enabling scale gains and synergies, a higher capacity of investments in research and development and the strengthening of the plastic manufacture industry - the petrochemical’s third generation.

The implementation of this operation shall occur with the convocation of an Extraordinary General Meeting (EGM) especially for this purpose. Upon the approval at the EGM, the Braskem’s capital shall increase with the issue of 103 million of new shares.

"Such operation allows Braskem to accelerate its strategic plan to be among the ten major global petrochemical companies and shows the strong fulfillment capacity of the Braskem’s teams", affirmed Grubisich.