According to a Bloomberg report, the Omani state-owned OQ is preparing a preparing a sales process for its subsidiary, the German oxo alcohols producer OQ Chemicals. Neither the company nor the putative lead adviser, Rothschild & Co., has commented.

OQ Chemicals has, however, confirmed a report that some of its main lenders had agreed to provide €75 million in bridge financing. A group of lenders have also agreed to extend the maturities of €1.1 billion equivalent of debt, some of which was due to be paid in October.

Oxo chemicals firm OQ Chemicals has announced a two-year cost-saving programme that includes realignment and workforce reductions in Germany. This was attributed to high raw material and energy prices, plus inflation rates, particularly in Europe. Last year alone, rising energy costs amounted to “a high three-digit million Euro figure”.

OQ Chemicals has begun an optimisation and debottlenecking project for carboxylic acids at its plants in Germany. Structural work has already commenced, with completion planned before the end of the Q1. The acids are used as building blocks for lubricants, cosmetic ingredients and animal feed additives, among other things.

According to unconfirmed reports, the Omani state-owned energy company is considering an exit from OQ Chemicals eight years after acquiring it from private equity owner Advent International for slightly over $2.1 billion. Figures in the region of $3 billion have been cited.

Formerly known as Oxea Chemicals, OQ Chemicals is based at Monheim, Germany, and has sites in China, the Netherlands and the US, employing about 1,400 people. It mainly produces oxo intermediates and oxo derivatives.