GHCL targets another Romanian soda ash company

Sanjay Dalmia“s GHCL is continuing its buying spree and is set to acquire the Romanian soda ash producer US Govora for nearly USD 25 million. It already owns SC Bega Upsom, Romania“s only other soda…

Sanjay Dalmia“s GHCL is continuing its buying spree and is set to acquire the Romanian soda ash producer US Govora for nearly USD 25 million. It already owns SC Bega Upsom, Romania“s only other soda ash company. A GHCL spokesperson, however, refused to comment on the development. The company has bid for the Romanian company and may close the deal immediately after Diwali, said industry sources. If the deal comes off, it will make GHCL Romania“s biggest soda ash maker and help it penetrate the European market. GHCL acquired a majority stake in SC Bega Upsom, a leading soda ash maker in Romania, for USD 20 million in an all-cash deal. SC Bega Upsom was in the red when GHCL took it over; in less than two quarters after the acquisition, the company has turned round from losses of USD 60,000 a month and has begun making profits, added industry sources. The Romanian deals will give GHCL an entry not only into eastern Europe, but also to the European Union, which Romania will join in 2007.