Petrobras CEO still believes in agreement with IG4 on Braskem

Petrobras CEO still believes in agreement with IG4 on Braskem

Brazil’s state-controlled oil company Petrobras has taken a decisive step toward finalizing a governance agreement with investment firm IG4 regarding the transfer of a controlling stake in petrochemicals producer Braskem. On 11 February, Petrobras’ board approved waiving its preemptive and tag-along rights over Braskem shares held by Novonor, a move that clears a critical hurdle for transferring the stake to the Shine I FIDC fund managed by IG4, subject to antitrust approval by Brazil’s Cade competition authority.

Under the proposed governance structure, Petrobras and IG4 would each hold four seats on Braskem’s restructured 10-member board, with two independent seats, ensuring equal co-control. Petrobras CEO Magda Chambriard is set to chair the board initially, while IG4 would appoint the CEO and CFO and hold the vice-presidency. Leadership roles would rotate after a three-year term, according to Brazilian media reports. This represents a significant shift from the prior Novonor-era agreement, where Petrobras held fewer board seats.

The transaction aligns with IG4’s strategy to acquire Novonor’s Braskem stake via a debt-for-equity swap, though Cade has extended its review of the deal, citing the need for a deeper analysis of its competitive implications. Meanwhile, Braskem faces ongoing financial challenges, including heavy debt and weak cash flow, with analysts anticipating a debt restructuring in 2026. Recent legislative efforts to expand tax incentives for chemical producers could provide up to $290 million in annual earnings for Braskem if enacted.

Petrobras has stated it will disclose final transaction terms upon receiving official notification, signaling continued commitment to the partnership despite regulatory delays.