Brazil's antitrust regulator Cade has approved IG4 Capital's acquisition of a controlling stake in Braskem SA, clearing a major hurdle for the troubled petrochemicals producer. The approval allows Novonor SA to sell its stake to the asset manager, potentially ending months of uncertainty over Braskem's ownership structure.

Before Cade's decision, reports suggested IG4 might abandon the deal due to regulatory delays. Braskem has been burning through cash and faces potential bankruptcy within months, creating urgency for a resolution. Petrobras, which shares control with Novonor, indicated a new shareholders agreement would be necessary before considering additional capital investment in the company.

The approval is not final, as Petrobras CEO Magda Chambriard noted the administrative tribunal could still reverse the decision. Braskem shares pared earlier gains following the announcement, trading down 0.8% in São Paulo. The deal represents a critical step for Braskem's financial restructuring amid weak global petrochemical markets.