 Montedison initially was doing well, dominating about 80% of the national chemical market and 15% of the European Community market.However, the 1973 oil crisis proved disastrous for the company that was forced to seek state intervention in order to avoid bankruptcy; by the mid 1970s the Italian state came to own about 17% of Montedison, becoming its largest single shareholder, but its effective control was even greater as state-owned banks held shares.The company became increasingly an arm of sate social policy and employment goals were favored over profits.