By Dana Mattioli and Dana Cimilluca
LyondellBasell Industries NV has made a takeover approach to Braskem SA, according to people familiar with the matter, eyeing a deal that could value the Brazilian petrochemical company at well over $10 billion.
The talks are at an early stage, the people said, and there is no guarantee there will be a deal.
Should there be one, it would be substantial: Braskem on Monday had a market value of about 37 billion Brazilian real ($11.4 billion) and nearly as much debt. LyondellBasell had a market value of about $40 billion.
It would also be the second-largest Brazilian M&A deal, according to Dealogic. There has only been one double-digit-billion dollar deal in the country, according to the data provider's records: a $43 billion acquisition of oil-and-gas assets by Petrobras, announced in 2010.
LyondellBasell and Braskem operate in similar product lines but different geographies. Products include polyethylene, which is used in everyday items such as garbage bags and milk jugs. A deal would also give LyondellBasell access to faster-growing Latin American markets.
Write to Dana Mattioli at email@example.com and Dana Cimilluca at firstname.lastname@example.org