12 October 2012 19:00 [Source: ICIS news]
LONDON (ICIS)--German chemicals giant BASF is to acquire sections of the global toluene diisocyanate (TDI) business of Polish state chemicals manufacturing group Ciech, the companies said on Friday.
The deal includes sections of Ciech’s TDI operations, but does not include Zachem, the company’s Polish TDI manufacturing subsidiary, BASF said. The deal is subject to regulatory approval, and is expected to close in the first quarter of 2013. Financial details were not disclosed.
Struggling under a heavy debt burden, Ciech announced a zlotych (Zl) 355.2m ($112m, €86.8m) loss in its second quarter 2012 results, and was pursuing a restructuring programme. In the results, announced 19 July, the company said that it may cut up to 10% of its 6,000 person employee base. Ciech was aiming to reduce its net debt to earnings before interest, taxes, depreciation and amortisation (EBITDA) ratio from 4.1 to 2.0 by 2015, the company said.
Poland’s treasury ministry was understood to be searching for a Chinese investor to acquire Zachem, according to ministry sources. However, Chinese conglomerate Wanhua Industrial Group has already stated that it had no interest in acquiring the business.
Zachem was operating at a loss, and may even be liquidated, according to Austrian investment bank Raiffeisen Centrobank. The company was continuing to push forward with development plans for the time being, and was expecting to begin trial runs of its glycerine-based ECH line this October.
($1 = Zl 3.17) (€1 = Zl 4.09)
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