ZA Puławy closer to deal with Ciech

Fertilizer producer Zakłady Azotowe Puławy (ZA Puławy), part of chemical holding Grupa Azoty, is getting closer to buying Organika-Sarzyna, part of the business of sector firm Ciech, according to sources quoted by Rzeczpospolita. At the end of last year, reports appeared about a deadlock in talks between ZA Puławy and Ciech. But the newspaper’s sources said that now the companies are close to an agreement. The deal value is likely to be over PLN 500 million. The agreement may be officially signed before the end of Q1 2014. This could be a favorable move for Poland’s State Treasury, which wants to sell a 38.72 percent stake in Ciech. If the price for Organika-Sarzyna is high, the value of the Treasury’s Ciech stake will grow, Łukasz Prokopiuk, an analyst from brokerage DM IDMSA, told the daily. /kw/jb