Larco sale deal is called off

The operation of mining company Larco under state management is estimated to have cost Greek taxpayers 5.77 billion euros in 2015 prices for the period 1989-2019. This is the conclusion of a study by the Center for Liberal Studies (KEFiM) on the issue. It also pointed out that in 2020 Larco owed approximately €480 million in overdue arrears, mainly to public enterprises and organizations. This survey comes a few days after the decision for the consortium of GEK Terna and AD Holdings to acquire the company and its mines, following the tenders by Larco's special administrator and the state asset utilization fund (TAIPED).

The planned sale of indebted and idle state mining firm Larco has been called off, the Ministry of Finance announced Monday.

Market analysts had long expected the move. It was made inevitable Friday, when GEK Terna and AD Holdings, the consortium chosen to buy Larco's assets and the accompanying mining rights, informed the ministries concerned of its decision to pull out of the deal.

The consortium noted in its letter that unfavorable developments in the global energy and metal markets, especially in nickel products, and the continuing legal entanglements concerning the shuttered company's continued employment of its workforce, and the bidding process itself by the failed bidders, led them to withdraw from the deal.

GEK Terna and AD holdings had set up a company, Hellenic Nickel, to transfer Larco's assets.

The Hellenic Republic Asset Development Fund ...

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