GHCL buys 65% stake in Romanian firm for $19.5mn

GHCL has acquired 65% stake in Romania-based soda ash manufacturer SC Bega Upsom SA through its international subsidiary in an all-cash, $19.5 million deal.

According to a release issued by GHCL to the BSE today, the company will acquire the balance 35% stake through a public offer as required by the local regulations.

"With this acquisition, the company's total soda ash capacity globally would increase by 3,00,000 metric tonne per annum (MTPA) to 9,00,000 MTPA. The company has financed the acquisition through the recently made FCCB issue of $80.5 million," the release added.

"This acquisition is a first step towards attaining leadership position in the global soda ash industry with a strong presence in the European markets. The Romanian acquisition would provide us with the comprehensive knowledge of the European markets keenly required for a robust growth strategy," Sanjay Dalmia, chairman of GHCL, said.