31 October 2012 16:05 [Source: ICIS news]
LONDON (ICIS)--The managements of Poland's Zaklady Azoty Tarnow (ZAT) and Zaklady Azotowe Pulawy (ZAP) have extended the deadline for reaching an initial pre-merger agreement by 15 days to 14 November, ZAT said on Wednesday.
The talks on the proposed management structure, corporate governance and large energy investment projects of the group that would be formed by the merger, to be named Grupa Azoty, were moving in the right direction, it added.
However, some points required further analysis and consultation prior to an agreement, ZAT said.
The controlling shareholder in the two companies, Poland's treasury ministry, said it sees great chemical industry consolidation potential in Grupa Azoty, which it estimates will be Europe's second largest producer of fertilizers, as well as a producer of caprolactam, melamine, polyamide 6 (or nylon 6), plasticizers, titanium dioxide and oxo-alcohols.
Unions representatives who have formed The Defence Committee for ZAP have, however, stated that they are far from convinced that the planned merger will not bring substantial job cuts and worse employment conditions.
The merger should be completed in early 2013, the treasury ministry said.
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