By Brazil Stock Guide – Brazil’s antitrust regulator has cleared an important step in the long-running effort to restructure the ownership of Braskem (B3: BRKM3, BRKM5; NYSE: BAK), potentially paving the way for the replacement of controlling shareholder Novonor, the conglomerate formerly known as Odebrecht and currently under judicial recovery.
In a filing released Friday, Braskem said the General Superintendence of the Administrative Council for Economic Defense (CADE) approved without restrictions the concentration act related to the potential entry of a private equity fund advised by IG4 Sol, part of the IG4 Capital group.
The structure could lead the fund to assume the stake currently held by Novonor through a complex credit mechanism involving the Shine I Fundo de Investimento em Direitos Creditórios (FIDC). The fund acquired credits against companies of the Novonor group that are secured by fiduciary liens over Braskem shares.
With the approval now published by CADE’s staff, a 15-day period begins during which the tribunal of the antitrust authority may decide to review the decision. If the case is not avoked by the court, the approval becomes final from a competition standpoint.
Credit structure
The operation is linked to the broader restructuring of Novonor’s liabilities after the financial crisis that followed the corruption scandals uncovered in Brazil over the past decade.
Novonor has long sought to monetize its stake in Braskem as part of its judicial recovery plan. The petrochemical company remains one of the group’s most valuable remaining assets.
Through the Shine credit structure, investors associated with IG4 could ultimately gain control over the shares pledged by Novonor as collateral. In practice, the mechanism would allow creditors to convert financial exposure into equity participation in Braskem.
Braskem itself is not a direct party to the transaction but is affected because the pledged shares represent a significant block of its capital. Any change in ownership could reshape the company’s governance and shareholder balance.
Strategic uncertainty
Braskem is the largest petrochemical producer in Latin America and one of the world’s leading suppliers of thermoplastic resins. Yet its corporate structure has been marked by uncertainty for years.
Potential buyers have periodically evaluated Novonor’s stake, while Petrobras — the company’s other major shareholder — has at times studied strategic alternatives for its participation.
At the same time, Braskem has been dealing with operational and reputational challenges, including environmental liabilities linked to land subsidence in the city of Maceió, in the Brazilian state of Alagoas.
A clearer shareholder structure could help stabilize governance after years of speculation about potential ownership changes.
For now, the CADE decision removes one regulatory hurdle, but the transaction still depends on additional conditions tied to the credit structure and negotiations among Novonor, the Shine fund and investors linked to IG4.
Braskem said it will continue to inform the market of any developments related to the potential operation as new information becomes available.
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