Alkali Chemicals Business Sold to Tronox for US$1.64 Billion
Published By : 10 Feb 2015 | Published By : QYRESEARCH
FMC Corporation, an NYSE listed firm, announced that it has made a final deal to sell its Alkali Chemicals business to Tronox Limited.
The company had previously broken the news of their acquisition of Cheminova A/S, a multinational agrochemical maker. FMC Corporation said that they would divest the Alkali Chemicals business to lower the debt caused by their pending acquisition.
Alkali Chemicals is globally the largest producer of natural soda ash through its processing and mining plants that are located in Green River, Wyo. The company’s products are mostly used in the manufacturing of glass, pulp and paper, water treatment, cosmetics, pharmaceuticals, food, and textiles.
Pierre Brondeau, the president of FMC, said that he was pleased to sell their Alkali Chemicals business to one of the leaders of the global mining and minerals companies: Tronox. The transaction will let FMC hold their strong balance sheet while the company focuses of global agriculture, nutrition, and health. Their portfolio will now concentrate only on high-growth markets.
The Chief Executive Officer of Tronox, Tom Casey, said that Alkali Chemicals brings with it an industry leading position that is complimentary to Tronox’s. The business brings with it a consistently strong financial and operational profile.
Tom also said that the two firms together will be able to create a leading company for inorganic chemicals. The new firm should have a sales value of US$2.6 billion in terms of scale, scalability, strength of finance that will allow the company to chase its strategic growth initiatives.
The sale is valued at US$1.64 billion. It is also expected to close in the first quarter of 2015, although it is subject to customary regulatory approvals and closing conditions.