02 July 2010 15:51 [Source: ICIS news]
PRAGUE (ICIS news)--Brenntag has opted not to pursue its interest in acquiring the chemical distributor subsidiary Cheman from Polish chemical group Ciech, after performing due diligence, the German chemical distributor said on Monday.
Not enough value was seen in the potential deal, added Brenntag, the world leader in full-line chemical distribution in terms of sales.
Ciech was seeking the disposal of its non-core subsidiaries, such as Cheman, in order to pay down its debt and prepare for a possible re-launch of its so far unsuccessful privatisation attempts.
"The failure to dispose of Cheman to Brenntag should not be seen as much of a setback in addressing Ciech's debt, given that it had now moved its restructuring up a gear by deciding to slim its business down to just two divisions - soda ash and organic chemicals," said Jerzy Majchrzak, director of the Polish Chamber of the Chemical Industry (PIPC).
($1 = €0.80)
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