Umicore wins auction for Delphi catalyst unit
By Our Corporate Bureau | 13 Aug 2007
Mumbai: Belgium metals firm Umicore SA has won a bankruptcy court auction of Delphi Corp's catalyst business for $75 million.
The catalyst business includes facilities in Oklahoma, France, China, Mexico, Australia and South Africa and holds more than 70 patents.
Delphi is selling the catalyst business and other small units as part of a court-managed restructuring, which the company hopes to complete before the end of 2007.
The auto parts maker earlier this month won court approval for a $2.55 billion financing package led by Appaloosa Management LP designed to take it out of Chapter 11 protection.
Troy, Michigan-based Delphi said Umicore's offer would be presented to the New York bankruptcy court for approval on August 16, with the deal expected to close by year's end.
Umicore struck a tentative deal to buy the business from Delphi for $55.6 million in June, but an auction was scheduled after Catalytic Solutions Inc. emerged with a rival bid. Delphi said that it would also present Catalytic's final offer to the bankruptcy court as an alternative in the event that Umicore fails to close the deal. Umicore would then have to pay a $2 million break-up fee.
The California-based Catalytic Solutions makes catalysts to neutralise emissions for the motor vehicle, energy and petrochemical industries. The company had hoped to use the Delphi deal as a springboard into the fast-growing European light diesel market, as well as Asian markets.
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