Tata Chemicals Limited acquires UK based British Salt Limited through its subsidiary

Tata Chemicals Limited announced the acquisition of UK based British Salt Ltd. The investment was made by Tata Chemicals Ltd’s wholly owned UK subsidiary Brunner Mond (BMUK). Brunner Mond acquired the UK-based British Salt Limited for $144 million (around Rs.656.48 Crore).

The acquisition will be financed entirely through debt, with no recourse to TCL. British Salt is one of UK's largest manufacturers of pure dried vacuum salt and enjoys a market share of 50% in the country. British Salt owns brine wells in the UK with residual life of 50 years. British Salt is also into gas storage business.

The acquisition will provide long-term supply of brine for soda-ash manufacturer Brunner Monds' operations.

In 2007, UK-based Private Equity firm LDC bought British Salt from its previous owners US Salt Holdings LLC. US Salt had bought British Salt from its previous owners, Stavely Industries Plc in 2000 for pound 80 million. LDC sold the gas storage facility of British Salt to EDF Energy in July 2009.

British Salt employs 125 people, and produces approximately 800,000 tonnes of pure white salt every year. Tata Chemicals (TCL) is the manufacturer of inorganic chemicals and fertilizers and is the second largest producer of soda ash in the world. It is India's market leader in the branded and iodized salt (Tata salt, I-shakti) segment as well as in urea and phosphatic fertilizers.

Recently, Rallis India, a subsidiary of Tata Chemicals acquired a majority 59% stake in Bangalore-based seed company Metahelix Life Sciences Pvt Ltd for Rs.125 Crore. In past, Tata Chemicals had acquired US-based General Chemical Industrial Products in 2008 and Brunner Mond in two tranches – 63.5% in 2005 for Rs.508 Cr and balance 36.5% in 2006 for Rs.290 Cr.

This month, Tata Chemicals has announced to acquire South Africa’s Grown Energy (PTY) Ltd for $1.10 million. Grown Energy explores bio fuels opportunities in Mozambique. For quarter ended June 2010, Tata Chemicals reported net sales of Rs.2,447.1 Cr with PAT of Rs.215.9 Cr.

Tata Chemicals Limited (TCL) is a global company with interests in businesses that focus on LIFE — living, industrial and farming essentials. It is the world's second-largest producer of soda ash. With manufacturing facilities in India, UK, US and Kenya, TCL is the world’s most geographically diversified soda ash Company, with an efficient supply chain that can service customers across the globe.

21 Dec 2010.