LONDON (ICIS)--Grupa Azoty has given up on its attempt at acquiring fellow Polish chemical producer, Zaklady Chemiczne Organika-Sarzyna, a maker of plant protection chemicals and epoxy and polyester resins, Azoty said on Wednesday.
Azoty's decision to call off its pursuit of Organika-Sarzyna came in the wake of KI Chemistry - the new owner of the Ciech Group which the unit is part of – declaring that it would rather invest in the firm than sell it.
Grupa Azoty had hoped that its nitrogen fertilizer, and caprolactam (capro) subsidiary Zaklady Azotowe Pulawy (ZAP) would succeed with its offer for Organika-Sarzyna, lodged in the first quarter of last year.
However, in a statement, Grupa Azoty vice-president Andrzej Skolmowski said the acquisition was no longer a possibility and that Grupa Azoty and ZAP would be scrutinising the market for alternative takeover opportunities.
Early last year, Organika-Sarzyna’s resins business lost its epichlorohydrin (ECH) feedstock supplier when Ciech opted to shut down and divest assets at subsidiary Zachem.
Ciech, the core business of which is soda ash production, acquired Organika-Sarzyna from the Polish treasury ministry as part of an expansion drive in December 2006.
Last week, state officials agreed to the privatisation of Ciech in accepting KI Chemistry's bid for the state's 38.7% stake in the company. In all, KI Chemistry, a subsidiary of Kulczyk Investments, now owns 51.1% of Ciech.