MOSOW (MRC) -- Brazil's Braskem SA, Latin America's largest petrochemical producer, said Monday it had entered into talks with the US Department of Justice and the Securities and Exchange Commission regarding an internal graft probe started in 2015, reported Reuters.
Braskem said in a securities filing that it planned to begin a parallel process with Brazilian authorities and an eventual deal could result in "material financial obligations" and other possible sanctions. The company said it could not predict the duration or result of the ongoing talks.
As MRC informed before, Brazil's state-controlled oil producer Petrobras is seeking to sell its 5.8 billion Brazilian real (USD1.4 billion) stake in petrochemical producer Braskem SA. Petroleo Brasileiro SA (Petrobras) hired Brazilian bank Banco Bradesco SA as a financial adviser and started to pitch the sale to foreign investors.
Petrobras owns a 36 percent stake in Braskem, Latin America's largest petrochemical producer. The sale would help Petrobras meet its target of selling USD15.1 billion worth of assets in 2015-16, a key part of its plan to cut debt as oil prices plunge to 12-year lows.
Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).