Negotiations for takeover of Petrochemicals Arges by Oltchim to be completed in a month

Negotiations between Petrom, the Economy Ministry and Oltchim for the takeover by the chemical plant in Ramnicu Valcea of Petrochemicals Arges will last for another month, declared for NewsIn the Oltchim general director, Constantin Roibu.

Largest Romanian company Petrom confirmed at the beginning of May it is currently in talks with the Economy Ministry for the transfer of Petrochemicals Arges to the state, but did not confirm the sum of 150 million euros announced by the ministry's representatives.

Petrom set up in June 2007 the division Petrochemicals Arges to take over the activity of refinery Arpechim. PCC SE, the minority shareholder of Oltchim, also showed interest in the branch. The ministry's plan is to take over the petrochemical unit for Oltchim.

Oltchim announced losses deepened an annual eight-fold in the first three months this year, to 28.1 million lei, after turnover shrank 39 percent.

The company has a share capital of 34.3 million lei divided into 343.02 million shares at a face value of 0.10 lei, being 54.79 percent controlled by the Economy Ministry. German group PCC SE owns a 12.15 percent stake.

Shares are listed at the first tier of the Bucharest Stock Exchange (BSE), under the symbol OLT.

NewsIn