India's GHCL Ltd is set to acquire a second loss-making synthetic soda ash unit in Romania in 2006 for around USD 24M. However, unlike SC Bega Upsom SA, which GHCL bought for USD 19.5M, 2005, the proposed acquisition is not that of a privately held company. GHCL is also negotiating with two US-based natural soda ash companies for an early acquisition. Chairman Mr S Dalmia said 21/06/06 the acquisition of the unit, which has an annual capacity in excess of 300,000/t & is run by a Romanian Government agency, would be made through a deferred payment plan. "We hope to acquire the unit in July. The in-principle agreement we have struck with the government agency entails immediate change-over of management control in favour of GHCL, operational turnaround within a year timeframe from the time of actual acquisition, no payment for the first year, a long-term staggered payment schedule and increase in capacity by another 100,000 tpa in the first year after acquisition", Mr Dalmia said. He said the acquisition would ultimately cost the company around 20% more than SC Bega Upsom SA. According to sources close to the deal, the staggered payment would continue for five years.
