November 20 (SeeNews) - Romania's economy ministry said that the takeover of the assets of insolvent chemicals producer Oltchim [BSE:OLT] by local peer Chimcomplex Borzesti [BSE:CHOB] is almost completed and Chimcomplex will pay the contract price within 20 working days, by December 17.
The company and over 1,200 jobs will be saved, the ministry said in a press release on Monday evening.
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Chimcomplex concluded in October a contract to pay 582.3 million lei ($146 million/ 125 million euro) for six bundles of Oltchim assets.
The assets acquired by Chimcomplex are land and buildings both completed and in progress, intellectual property, as well as other mobile assets mainly consisting of machinery, equipment, technologies and similar goods.
At the end of July, Chimcomplex Borzesti said it received preliminary approval from the European Commission's competition directorate for the acquisition of Oltchim and subsequent merger.
Following the acquisition and merger, the newly formed entity - Romanian Chemical Company - will integrate the industrial platforms from Chimcomplex Borzesti and Oltchim.
Oltchim, which has been in insolvency since 2013, is the only producer of liquid caustic soda in Central Europe and the only producer of chlorine and polyether polyols in Romania.
It has booked a net profit of 83.6 million lei in the first half of 2018, a threefold increase year-on-year.
Oltchim shares changed hands 0.54% higher at 0.3710 lei on the BVB as at 1042 CET on Tuesday.
Chimcomplex shares traded 11.8% higher at 3.98 lei on the alternative segment of the BVB, AeRO, on Tuesday.
(1 euro=4.6650 lei)