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September 29, 2022

The European Commission has given its preliminary consent to the merger of Chimcomplex – Oltchim

The acquisition of Oltchim’s assets by Chimcomplex, which will lead to the formation of the Romanian Chemical Company, is entering the final stages.

The General Directorate for Competition of the European Commission recently issued the Comfort Letter on the procedure for the sale of Oltchim’s SA assets to Chimcomplex Borzesti. Awaited for 6 months, the letter confirms that the terms and conditions underlying the current sales process do not indicate a possible economic continuity between Oltchim SA and the buyers of assets, Chimcomplex Borzesti, thus sending a signal of approval and confidence in the transaction to the European financial environment.

Over the past two months, the Due Diligence audits and reports by PricewaterhouseCoopers (P.W.C) and Jacobson London have been finalized and have been offered to potential lenders who are expected to make their offers in the coming weeks. “The successful conclusion of this transaction is of monumental importance for the revival of the chemical industry in Romania with the objective of integrating and developing an industrial complex that will become one of the most important players in the Romanian chemical industry and in South Eastern Europe,” says Virgiliu Bancila, chairman of CA Chimcomplex.

“I would like to express my thanks for the two meetings we had last month with the Minister of Economy Mr. Danut Andrusca and with his ministry experts, following which we jointly established a strategic cooperation plan open to public-private partnership. It has been established that the priority is the completion of the transaction, for which both parties will work together, and secondary is the end of the transaction. The chemistry branch is of strategic importance for Romania and deserves to be supported by all decision-makers as it ensures the development of the entire economy horizontally, “completes President Bancila.

We refer here to: gas processing, where Romania excels, to electricity consumption that is produced in the country (now we export electricity due to the lack of large industrial consumers) and thousands of jobs. We will finally rebuild the pride of being a chemist in Romania through decent wages provided by the investments that will follow, namely 117 million euros in the first 3 years after the acquisition of Oltchim and 450 million euros starting with the year 4 “, the head of CA from Borzesti.

Given the type of transaction (the largest in Eastern Europe this year), the finalization of the funding of this merger is assisted by the senior advisor Deloitte London. Chimcomplex representatives have had a series of successful meetings in London with experienced investors in this field and such transactions in Eastern Europe, and soon the entire financing process will be completed.

The Romanian Chemical Company will integrate the industrial platforms from Chimcomplex Borzesti and Oltchim Ramnicu Valcea after the conclusion of the purchase transaction by Chimcomplex Borzesti of the 1-5 asset groups and partially 7 of Oltchim.

Chimcomplex Borzesti is one of the most important chemical producers in Romania, established by the state in 1954. In 2003, the company was privatized and the SCR group, led by the entrepreneur Stefan Vuza became the main shareholder. Today the company is listed on the alternative segment of the Bucharest Stock Exchange.

The production method of Chimcomplex Borzesti refers to the sodium chloride electrolysis process involving predominantly caustic soda production (78% of sales), mainly used in the production of a wide range of organic and inorganic chemicals, cellulose and paper , aluminum, textiles, soaps and detergents as well as treatments for drinking water.

Oltchim is the largest producer of chemicals in Romania, especially polyethers & polyols. Oltchim was founded in 1966 under the name of the Combinatul Chimic Vâlcea, since 1990 it functions as a joint stock company and since 1997 it becomes a public company by listing on the Bucharest Stock Exchange.

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