The Commercial Court of Lyon in southeast France has accepted a joint takeover offer for the struggling petrochemicals firm Kem One, by Alain de Krassny and Opengate Capital, the company said in a statement late Friday.
Kem One, a vinyl producer, went into administration in March amid what has been a difficult time for many European petrochemicals firms as high costs have made operations unprofitable.
Kem One, owned by entrepreneur Gary Klesch, had been able to maintain operations due to temporary bailout funding and the court's decision allows the business to continue.
The French state is to be a "partner in the project," Prime Minister Jean-Marc Ayrault said in a statement.
"This is a new phase for Kem One who will now have the necessary assets to continue to grow in the Vinyl industry," the company said.
Originally, Alain de Krassny and Opengate Capital placed separate offers for the company and last week it emerged a combined deal was in the pipeline.
The French government has been keen to engineer a deal to keep Kem One in operation and when the separate offers were submitted earlier this month, the industry ministry said they both included state support.
The French government would "make sure the new shareholders carry out responsible and sustainable action," the prime minister's office said Friday.
The deal also involved cooperation from Kem One's business partners Total, Arkema and EDF, as well as local government officials and union representatives.
Kem One is headquartered in Lyon and has seven industrial sites in the southeast region, where much of France's petrochemicals industry is based.
Kem One has around 1,300 employees and many more jobs rely on the firm's operations. The business is particularly important for France's PVC sector.
