The Indian company GHCL bought 65 percent in Romanian soda ash producer Bega Upsom Ocna Mures, Alba Country, for 19.5 million dollars (16.5m euros).
A press release from the Indian company specifies that GHCL will also acquire the remaining 35 percent following a tender offer, as required by the regulations in force on the Romanian market.
"With this acquisition, the total soda production capacity of the company will increase by 300,000 metric tonnes a year to 900,000 tonnes. The necessary amount for funding the transaction comes from an issue of bonds worth 80.5 million dollars," the release states.
The Indian company bought the factory in Romania with consolidation on the European market in mind, aiming at the same time to position itself as number one in the world soda market.
Bega Upsom is part of the Bega group of companies controlled by brothers Marius and Emil Cristescu, who also own the Uzinele Sodice Govora (Govora Soda Plant).
According to the latest edition of the top 300 richest Romanians, recently published by Capital magazine, the Bega Group posted 180 million euros in turnover, derived from chemical industry operations, oil drilling, the machinery building industry, transport, tourism and constructions in 2004.
Another significant stake in Bega Upsom is held by Romgaz, with 30 percent. This company is also one of the main suppliers of Bega Upsom.
Another party interested in the takeover of Bega Upsom was the Polish firm Ciech, which operates in the chemical and pharmaceutical industries.
GHCL''s annual production capacity stands at 600,000 metric tonnes with regard to its facilities in India.
The company is also involved in the textile business, and posted total sales of more than 30 million euros in the first nine months of the year.
andrei.chirileasa@zf.ro
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