Chimcomplex starts building regional chemicals giant with Oltchim takeover

Romanian chemical company Oltchim, which is currently under insolvency procedures, announced on December 10 that it has completed the procedures to sell the largest part of its operating assets to Chimcomplex Borzesti, the sole bidder for the assets.

State-controlled Oltchim became insolvent in 2013 and several privatisation attempts have failed since then. The deal with Chimcomplex, controlled by local investor Stefan Vuza, may now mark the emergence of a strong regional player. The main opportunity is the strong domestic demand, as shown by Romania's large imports of chemical products. The threats are related to the need to consolidate two entities with visibly different cultures, but Vuza has strengthened the management by bringing experts with international exposure into his team for the first time.

One year after the creditors agreed on the deal with Chimcomplex, completion of the sale of the largest part of Oltchim finally puts an end to the five-year saga of failed privatisation and a fierce struggle for recovery. 

Oltchim creditors approved the sale of asset bundles to Chimcomplex in December 2017. A smaller bundle of assets was sold to another buyer: fellow local investor Dynamic Selling Group (DSG) agreed to pay €1.9mn for the construction materials division of Oltchim. Oltchim’s non-operating assets are still for sale.

In June, the European Commission endorsed the deal and in November Romania’s Competition Council approved the deal as well. Out of the 2,200 employees at Oltchim, 1,164 have agreed to sign labour contracts with Chimcomplex.

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