Privatization of Petkim had been cancelled

The decision came as a fresh blow to the Uzan family, one of the richest in Turkey, whose moneymaking power utilities and banks have recently been seized by authorities over irregularities.

The Uzans claim the onslaught is the result of a campaign led by Prime Minister Recep Tayyip Erdogan to block the rise of a political party led by one of the family scions, Cem Uzan, who is seen as the strongest challenger to the government for next year’s local elections.

In June, the Uzan-owned Standard Kimya company made the highest bid – of $US605m ($933m) – in an auction for the sale of a 88.86-percent stake in Petkim.

The privatization board did not say what conditions the Uzans failed to fulfill, but media reports have said the family was facing difficulties in acquiring the necessary bank guarrantees for the payment after running into trouble with the government.