Ercros loses 12 million euros while both takeover bids are already in phase 2

BarcelonaThe Catalan chemical company Ercros lost 11.7 million euros last year, a figure that contrasts with the 27.6 million euros in profits it obtained in 2023. The president of the company, Antoni Zabalza, attributed the results this Tuesday, among other factors, to the continuation of a low phase of the cycle, which could be bottoming out; to "weak" European demand and to the consequences of the "energy shock" that are still dragging on from the beginning of the war in Ukraine. The negative results are known in the midst of the takeover bids of the Portuguese company Bonalti and the Italian company Esseco, which are in phase 2 at the National Commission of Markets and Competition (CNMC). However, Zabalza estimates that the takeover bid will not be resolved until at least October or November.

Last year, Ercros' revenues fell by 7.6%, to 700.3 million euros. Of that amount, a total of 643.4 million (9% less) corresponded to the sale of products. In this regard, Zabalza has highlighted that during the first half of the year sales fell by 17% compared to the same period of the previous year, while in the second half of 2024 the trend was reversed and they rose by 2.7%.

Competition Notice

This Tuesday, the CNMC issued a statement on one of the two takeover bids affecting Ercros. The regulator warned in a statement that it sees risks to competition "in the markets for the sale of potassium hydroxide, in solid and liquid form, and potassium carbonate", in the case of the takeover bid by the Italian company Esseco on the chemical company. Thus, on February 7, it agreed to begin phase 2 of the analysis of this operation. The Competition Authority justifies analysing the operation in a second phase due to the overlapping activity of both companies in these businesses, but makes it clear that this more exhaustive analysis "does not prejudge the definitive conclusions" that it may reach. Regarding the Bondalti takeover bid, the agency already stated that it sees risks to competition "in the markets for caustic soda and sodium hypochlorite".

On June 28, Esseco launched a voluntary takeover bid for all of Ercros' share capital at a price of 3.84 euros per share, 6.7% higher than the 3.60 euros offered by the Portuguese company Bondalti in its attempt to gain control of the Catalan company. Coinciding with the publication of results, Ercros shares fell during trading on Tuesday and closed the session with a drop of 5.88%.