(Bloomberg) -- Tata Chemicals Ltd. is in advanced talks to acquire the industrial salt unit of Archean Group that could value the business at 4.5 billion rupees ($61 million) at a minimum, according to people familiar with the matter.
The board of Tata Chemicals is set to discuss the potential offer as soon as this month, said the people, who asked not to be identified as the information is private. Negotiations are ongoing and could still fall apart, the people said.
A representative for Archean declined to comment, while a representative for Tata Chemicals didn’t provide any immediate comment.
A potential deal could offer a reprieve to Archean, which has been struggling to service its debt obligations for the past two years. The Chennai-based company, founded in 1982, has businesses spanning from industrial salt, fertilizers to mining, according to its website.
In 2018, India Resurgence Fund, a joint venture between Bain Capital and Piramal Enterprises Ltd., invested $156 million in Archean’s marine chemical business. The company said it would use the proceeds for refinancing existing debt and providing capital to grow its market share in India and abroad. ICRA, a credit rating agency, upgraded Archean’s rating in October 2019 citing operational improvements since the investment, but said its capital structure remains highly leveraged.
The Archean unit, with a production capacity of 3 million metric tons, makes industrial salt used as an intermediary in the manufacturing of products from detergents, textile dyes to plastics and glass.
Últimas Noticias
Debanhi Escobar: they secured the motel where she was found lifeless in a cistern
Members of the Specialized Prosecutor's Office in Nuevo León secured the Nueva Castilla Motel as part of the investigations into the case
The oldest person in the world died at the age of 119
Kane Tanaka lived in Japan. She was born six months earlier than George Orwell, the same year that the Wright brothers first flew, and Marie Curie became the first woman to win a Nobel Prize
Macabre find in CDMX: they left a body bagged and tied in a taxi
The body was left in the back seats of the car. It was covered with black bags and tied with industrial tape
The eagles of America will face Manchester City in a duel of legends. Here are the details
The top Mexican football champion will play a match with Pep Guardiola's squad in the Lone Star Cup
Why is it good to bring dogs out to know the world when they are puppies
A so-called protection against the spread of diseases threatens the integral development of dogs
