The Abu Dhabi National Oil Company ADNOC has terminated talks to buy a stake in Brazil’s petrochemicals company Braskem from its controlling company Novonor, Braskem said on Monday. At the end of last year, the state oil giant of the United Arab Emirates UAE proposed a non-binding offer to buy a stake in Braskem, in an offer implying an equity value of $2.14 billion 10.5 billion Brazilian reals for Novonor’s 38.3% stake in the Brazilian company.
ADNOC is pursuing deals to expand in international markets, including in petrochemicals, as the major oil producers in the Middle East are keen to expand the markets for their oil and products and lock in future demand. Petrochemicals are a key driving force of global oil demand. Recent estimates by the International Energy Agency IEA have shown that 90% of China’s increased oil demand from 2021 to 2024 comes from chemical feedstocks like LPG, ethane, and naphtha.