Aditya Birla group company Aditya Birla Chemicals (India), says it is acquiring the chloro chemicals division of Kanoria Chemicals & Industries Limited (KCIL) for a cash consideration of Rs830-crore.
"The Board of Directors of Aditya Birla Chemicals (India) Limited (ABCIL), a company of the Aditya Birla Group, today approved the acquisition of the Chloro Chemicals Division (CCD) of Kanoria Chemicals & Industries Limited (KCIL) for a cash consideration of Rs 830 crore," the company said in a press release issued in Mumbai today.
The acquisitionwould raise the total caustic soda capacity of ABCIL from 105,000 TPA to 220,000 TPA.
According to the release ABCIL was a chlor alkali producer having its manufacturing facility at Rehla in Jharkhad and the transaction would take ABCI to a higher growth trajectory.
The release further said that the transaction is being made on a slump sale basis and would be subject to customary corporate and other approvals. The transaction is expected to be concluded towards end-May 2011.
KCI's chloro chemicals division (CCD) is located at Renukoot in UP and manufactures chlor-alkalis, chlorine derivatives and water treatment chemicals.