Gujarat Heavy Chemicals (GHCL), the losing bidder for Romanian soda ash maker Uzinele Sodice Govora (USG), has filed a lawsuit seeking the termination of the acquisition of USG by Poland“s Ciech Grou…
Gujarat Heavy Chemicals (GHCL), the losing bidder for Romanian soda ash maker Uzinele Sodice Govora (USG), has filed a lawsuit seeking the termination of the acquisition of USG by Poland“s Ciech Group. GHCL, India“s largest soda ash manufacturer, claims that its permission is needed for the sale of the stake in USG. In December 2006, Ciech Group signed an agreement with Romania“s State Assets Recovery Authority (AVAS) to acquire USG for around USD 200 million. Earlier, when USG was in financial difficulties it mortgaged certain assets to GHCL, which the Indian company claims gives it a stake in the Romanian firm. According to the suit filed in a Romanian court early in May 2007, GHCL is seeking termination of the transfer of USG“s ownership rights to Ciech Group, and the annullment of a sales agreement between Ciech Group and SC Begacom (a shareholder in USG). The suit has yet to be heard, sources close to the matter said. When contacted, a Ciech spokesperson confirmed the development, but added that the firm sees itself as the legal owner of the USG shares. The deal was registered on 4 December 2006 at the Register Court Riavest at Timisoara, Romania.