Brenntag pulls out of acquiring Cheman from Poland’s Ciech

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 Polish company said it remained open to fresh bids for Cheman, which has the capacity to distribute more than 1,000 chemical products, including soda ash and toluene di-isocyanate (TDI).

"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)

To discuss issues facing the chemical industry visit ICIS connect

By: Will Conroy
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index