Aditya Birla Group, on Monday, announced the acquisition of the Atlanta-based Columbian Chemicals Company for $875 million, a move that will take its carbon black production capacity to two million tonnes a year.
The acquisition will make
Birla Carbon a leading player globally. The company will now be placed ahead of Cabot Corp and Germany's unlisted chemical maker Evonik Industries, the two leading producers of the chemical.
The Birla Group has bought equity of One Equity Partners, the merchant banking arm of J P Morgan Chase & Co, in Columbian Chemicals through its associates, Alexandria Carbon Black Company and Thai Carbon Black Company Ltd along with SKI Investment, Aditya Birla Group Chairman Kumar Mangalam Birla told reporters in Mumbai.
Birla group companies will raise $450 million in debt to fund the deal. However, the group's officials did not specify how the remaining funds would be raised.
The acquisition is subject to certain approvals. It is expected to be completed in the second half of this year.
Birla said the acquisition will give his diversified group access to markets in North America, Canada, Brazil, Germany, Italy and China.
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