India“s Tata Chemicals said 27 March 2008 that it had completed the acquisition of US-based soda ash maker General Chemical Industrial Products, making it the world“s second-largest soda ash maker a…
India“s Tata Chemicals said 27 March 2008 that it had completed the acquisition of US-based soda ash maker General Chemical Industrial Products, making it the world“s second-largest soda ash maker after Solvay. Tata Chemicals will now have an annual soda ash capacity of 5.5 million tonnes. The company has raised USD 500 million in a six-year overseas loan and USD 350 million in the form of a six-month bridge loan. It raised another USD 125 million through the sale of assets in group firm Tata Consultancy Services Ltd and Tata Investment Corp. “The acquisition gives us access to 150 major customers around the world and opens up huge opportunities on the marketing front”, Homi Khusrokhan, Tata Chemicals managing director told the press. “We are in talks for a term loan in place of the bridge finance, to be raised on General Chemical“s books”. General Chemical will contribute USD 400 million to revenue and USD 120 million to operating profit in 2008/09, Mr. Khusrokhan said. In January 2008, Tata Chemicals agreed to buy General Chemical for USD 1 billion, giving it access to low-cost natural soda ash reserves and a presence in the North American market.