Union leader warns that Croatia is losing control over the Petrokemija Company

In May of 2023 the Turkish Yildirim Group completed its acquisition of a 54.5% stake in Croatia's largest fertilizer production company, "Petrokemija D.D.” At the time of the privatization process there were some concerns that the selling off of this strategic company may not be the best course of action. However, these concerns were for the most part brushed aside by the Plenković government.

The Independent Trade Union for the Energy, Chemistry and Non-metals sector, has sent an open letter to the government and the director of Center for Restructuring and Sales, Milan Plećaš, in which they demand that responsibility be established and inadmissible omissions in the recapitalization of the Petrokemija Company be corrected.

After privatizing the Kutina-based chemical company that specializes in producing agricultural fertilizers, government decided to participate in the recapitalization proposed by majority owner the Yildirim Company from Turkey, so as to ensure that the share of state-owned shares in Petrokemija remains at least twenty-five percent plus one share. However, the process, for as yet unexplained reasons, was carried out in such a way that Croatia's ownership stake will be reduced to only some twenty percent. This would effectively mean a complete loss of control over Petrokemija's future.

Union leader Željko Klaus noted that as opposed to common business practice, by which the party with the largest stake in the company makes the first payment, for some reason Croatia paid first, thus enabling Turkey's Yildirim to assume a larger ownership share than was initially planned. Klaus concluded that if government does not find a way to reach an agreement with Yildirim in order to retain a controlling stake in Petrokemija, the union will take further action.

Source: HRT