Tata Chemicals buys British Salt for Rs656 crore
20 Dec 2010
Tata Group firm Tata Chemicals Ltd has bought 100 per cent stake in British Salt Limited, UK's major manufacturer of pure dried salt, for £93 million (around Rs656 crore).
Tata Chemicals made the acquisition through Brunner Mond, UK, its wholly-owned subsidiary. The deal has been structured appropriately through a holding company Tata Chemicals Europe Holdings, the company said in a release.
British Salt owns brine wells in the UK with residual life of 50 years and the acquisition secures long-term brine supplies for Brunner Mond operations.
Private equity-owned British Salt is also active in the gas storage business and has a promising business model, which has the potential to generate additional cash flows for the business.
"The acquisition is in line with the strategy of Tata Chemicals to deepen its presence in the food and farm sectors and will result in securing raw material for Brunner Mond operations.
This will help Brunner Mond to maintain its low-cost manufacturing position in Europe and provide a great opportunity to optimise the costs further.
