Brazil's antitrust authority Cade has approved without restrictions a transaction that could transfer controlling-company Novonor's stake in petrochemical producer Braskem to an investment fund advised by IG4 Sol, marking a significant shift in a long-running dispute over control of the petrochemical producer.
IG4 Sol is part of IG4 Capital, a private equity firm specializing in distressed assets. Its proposal involves acquiring Novonor's debt from a consortium of banks — including Itau, Bradesco, Santander, Banco do Brasil and national development bank Bndes — and converting it into equity in Braskem. This debt-for-equity approach could allow IG4 to assume Braskem's control without a direct share purchase.
Braskem said it learned from Cade's website that the watchdog issued a decision authorizing the concentration act related to Shine I FIDC's acquisition of Novonor-linked credit rights backed by Braskem shares.
The Shine I FIDC fund was created as part of the restructuring framework tied to Novonor's creditor-backed assets, and serves as the vehicle designated to receive the Braskem shares securing those obligations. The fund consolidates the credit rights involved and acts as the platform through which Braskem's controlling block would be transferred.
The approval opens a 15-day window in which Cade's tribunal may decide to take up the case, but the green light removes a key regulatory barrier for the structure under negotiation.
The decision contrasts with the extended review Cade initiated in early February, when the authority signaled it needed a deeper look at the implications of an investment fund entering Braskem's capital structure, even though the deal had originally been filed under the fast-track procedure.
At the time, Cade also considered concerns raised by plastics association Abiplast, which briefly sought third-party intervention before withdrawing its request.
The new approval now places Shine I FIDC and IG4 in the leading position to assume Novonor's stake. Braskem said on Friday that any final outcome remains contingent on the 15-day review period and on the various contractual conditions tied to Novonor's restructuring process. The company emphasized that it will disclose any further information received from Novonor, the fund or Shine I FIDC.
Novonor, under judicial recovery, has been seeking a path to divest most of its Braskem holding while potentially retaining a small minority stake as part of its restructuring plan.
State-controlled oil major Petrobras, Braskem's other major shareholder, had opted on 12 February not to exercise its preemption or tag-along rights in the potential transfer of Braskem's shares held by Novonor.
The renewed clarity on the antitrust front arrives against a backdrop of financial and operational strain for Braskem. The company has faced tighter cash conditions, pressure from weaker petrochemical spreads and setbacks at its Mexican joint venture Braskem Idesa, while lower plant utilization and feedstock constraints continue to affect domestic output.
