Aditya Birla Group acquires Kanoria Chemicals unit for Rs830 crore
16 Apr 2011
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.