Tata Chemicals proposes to buy a majority stake in the UK-based Brunner Mond Group, one of the world's largest producers of soda ash. It did not disclose the valuation of the deal.
A statement issued by the company on Thursday said the two companies had entered into an agreement in this regard. However, the agreement was subject to certain terms and conditions and regulatory approvals.
The Brunner Mond shareholders are a group of financial institutions including Wayland Investment Fund LLC, Barclays Bank plc, West LB, Citibank International plc and Aberdeen Asset Management Company. The company employs nearly 1,000 people including 450 in the UK, 100 in the Netherlands and 450 in Africa.
The announcement of the signing agreement for the acquisition lifted sentiment at the Tata Chemicals counter. The stock closed at Rs 215.75, up 5.79 per cent over Wednesday's closing price on the Bombay Stock Exchange.
Tata Chemicals recently made an abortive attempt to acquire Egyptian Fertilisers Company. Early this year, it had acquired a 33 per cent stake in Indo Maroc Phosphore SA (Imacid), Morocco for Rs 166 crore (Rs 1.66 billion).
Headquartered at Northwich in Cheshire, Brunner has a 1.6 million tonne production capacity of soda ash. It also produces 70,000 tonne of refined sodium bicarbonate.
The firm was set up in the 1990s following the acquisition of ICI's soda ash business in the UK and Kenya in 1991 and the business of Akzo Noble in the Netherlands business in 1998. Tata Chemicals is into chemicals and fertilisers. It produces 2,400 tonnes of soda ash per day.
Deal Street