Oltchim Makes Bid To Take Over Entire Activity Of Arpechim

05.26.2011 By Florentina Dragu

Romanian state-run chemical plant Oltchim (OLT.RO) Thursday said it has made an offer to take over the entire activity of troubled supplier Arpechim Pitesti, after owner OMV Petrom (SNP.RO) announced plans to shut down the installations.

Oltchim said it has proposed leasing Arpechim's installations from Petrom until negotiations are complete.

Contacted by MEDIAFAX, Oltchim's general manager Constantin Roibu didn't say how much the company is offering to buy out Arpechim, but said the deal could be sealed by year-end.

End-2009, Oltchim bought the petrochemical business of Arpechim refinery for around EUR13 million.

Petrom announced recently it would shut down the remaining operations at the refinery, because it couldn't find a suitable buyer.

Oltchim is majority owned by the Economy Ministry, with a 54.79% stake.

Thursday, Oltchim shares closed up 14.98% at RON1.059 in Bucharest.