October 30, 2017 / 5:47 PM / a year ago

LyondellBasell approaches Brazil's Braskem for takeover-WSJ

FILE PHOTO - General view of the refinery of U.S. chemicals group LyondellBasell in Berre, near Marseille, France, October 19, 2015. Picture taken on October 19, 2015. REUTERS/Jean-Paul Pelissier

(Reuters) - LyondellBasell Industries NV (LYB.N) has approached Brazil’s Braskem SA (BRKM5.SA) (BAK.N) for a potential takeover, valuing the petrochemicals company at more than $10 billion (7.57 billion pounds), the Wall Street Journal reported on Monday.

The talks are at an early stage and there is no guarantee of a deal, the Journal reported, citing people familiar with the matter. on.wsj.com/2zRqhHj

A deal would help LyondellBasell expand in Latin America, where Braskem is the biggest petrochemicals company.

The news comes amid a wave of big mergers in the chemicals sector. Dow Chemical and DuPont completed their $130 billion merger last month to form DowDuPont (DWDP.N), while ChemChina bought Swiss seeds group Syngenta SYNN.S for $43 billion earlier this year.

LyondellBasell and Braskem did not immediately respond to Reuters requests for comment.

LyondellBasell’s shares rose 6 percent to $105.03 while Braskem’s U.S.-listed shares climbed 14 percent to $33.42 in afternoon trading on the New York Stock Exchange.

Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar

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