FMC to Sell its Alkali Chemicals Segment to Tronox
Published By : 05 Feb 2015 | Published By : QYRESEARCH
A definitive contract has been signed by US-based FMC for selling its division of Alkali chemicals for a value worth US$1.64 billion to Tronox. The company has plans of divesting this division of alkali chemicals, and the purchasing the business of Cheminova for a value worth US$1.8 billion as a measure for reducing the debt with regard to the acquisition of Cheminova.
FMC’s alkali chemicals division segment caters to the demands of industries like cosmetics, food, textiles, glass production, natural soda ash, paper and pulp, water treatment, and pharmaceuticals. The business carries out its processing and mining facilities in Wyoming, the U.S. Pierre Brondeau, the president, CEO, and chairman of FMC has stated that this step will be a natural fit for the division of alkali chemicals.
In fact the business of alkali chemicals will eventually operate and grow as a strategic and a new business situated in Tronox. This transaction for FMC will enable the company for maintaining a strong and a good balance sheet since the company mostly focuses on nutrition, health, and global agriculture with a diversified portfolio that focuses mainly on markets that are growing robustly.
The financial advisors appointed by FMC are Goldman Sachs, and BofA Merrill Lynch, and legal advisors appointed include Morgan Lewis and Bockius, Lipton, Rosen and Katz, and Wachtell. For financing the acquisition, Tronox intends utilizing the latest debt from several banks, and existing cash from the same. FMC also has plans of operating the businesses so acquired as independent units.