24 May 2013 16:44 [Source: ICIS news]
LONDON (ICIS)--The Polish government’s chemical industry strategy of creating a national champion out of Grupa Azoty is very likely to lead to the group acquiring polyvinyl chloride (PVC) and nitrogen fertilizer producer Anwil, Raiffeisen Centrobank (RCB) said on Friday.
Current Anwil owner, Polish state-controlled oil and petrochemical group PKN Orlen, could accept the divestment of its subsidiary via a non-cash transaction based on a share swap that would give it shares in Grupa Azoty, it added.
In gaining a stake in Grupa Azoty – newly consolidated as Poland’s largest chemical group and Europe’s second largest fertilizer producer – PKN Orlen “would own a more liquid asset than its currently held Anwil shares”, said RCB analyst Dominik Niszcz.
“I assume Grupa Azoty is mostly interested in the fertilizer side of Anwil, but if there was a share swap transaction or a cash deal it would be more likely that Azoty would acquire both business lines in order to become a more diversified group,” he added.
The combined PVC capacities of Anwil and its Czech subsidiary Spolana add up to the largest PVC production capacity in central and eastern Europe, at 470,000 tonnes/year.
Spolana has a PVC capacity of 130,000 tonnes/year as well as a 40,000 tonne/year caprolactam (capro) business.
In November 2011, two companies that have since been absorbed by Grupa Azoty, Zaklady Azoty Tarnow (ZAT) and Zaklady Azotowe Pulawy (ZAP), dropped their interest in bidding for Spolana.
In June 2010, Orlen rejected a bid for Anwil from ZAP citing a lack of agreement on price and non-price conditions.
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