Industry

Tata Chemicals buys 25% remaining stake from U.S. unit for $195 million

File photo of R. Mukundan, Managing Director, Tata Chemicals.

File photo of R. Mukundan, Managing Director, Tata Chemicals.   | Photo Credit: Shashi Ashiwal

"With this transaction Tata Chemicals will have full ownership of the North American business and will further simplify enterprise architecture," R. Mukundan, Tata Chemicals Limited’s Managing Director & CEO said.

Tata Chemicals, through its wholly-owned subsidiary, Valley Holdings Inc., has acquired the remaining 25% partnership interest in Tata Chemicals Soda Ash Partners Holdings (TCSAP) from The Andover Group, Inc., a subsidiary of Owens-Illinois Inc. for $195 million or ₹1,386 crore.

Commenting on the deal, R. Mukundan, Tata Chemicals Limited’s Managing Director & CEO said, "with this transaction Tata Chemicals will have full ownership of the North American business and will further simplify enterprise architecture."

For the year ending March 2019, TCSAP had a turnover of $465.5 million and an EBITDA of $100.7 million.

“The acquisition is expected to be EPS accretive. We will continue to invest in our Green River facility to meet market demand and serve our customers globally," Mr. Mukandan added.

Tata Chemicals share on BSE were trading up 1.75% at ₹660 in a firm Mumbai market on Friday, valuing the company at ₹16,829 crore.

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Printable version | Feb 18, 2020 12:04:00 PM | https://www.thehindu.com/business/Industry/tata-chemicals-buys-25-remaining-stake-from-us-unit-for-195-million/article30355804.ece

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