News from Notch Consulting, Inc.

January 23, 2011

Aditya Birla Group makes bids for both Evonik and Columbian

Filed under: Carbon Black — Notch @ 10:40 pm

According to the Economic Times of India, Mumbai-based Aditya Birla Group has submitted bids for both German-based Evonik Carbon Black and US-based Columbian Chemicals but will buy only one. The article indicates that Birla bid $700 million (approximately Rs 3,200 crore) for Evonik and $800 million (Rs 3,665 crore) for Columbian. The situation should be resolved within the next few weeks.

On Friday, several sources reported that Birla had made a bid for Columbian Chemicals. From the Wall Street Journal online:

Aditya Birla Talking Deals

Diversified Indian conglomerate Aditya Birla Group is in talks to buy U.S.-based carbon black manufacturer Columbian Chemicals Co., people familiar with the matter said.

Aditya Birla would pay $800 million in cash, the people said, without elaborating on whether there is a noncash component to the deal as well. The two companies “are in exclusive talks, and the deal is likely to close in the next two weeks,” said one person.

The article also lists India’s Phillips Carbon Black as a possible buyer for Evonik Carbon Black.

An article in the Business Standard put the purchase price at $900 million.

AV Birla set to buy US firm for $900 mn

The Aditya Birla Group is set to acquire US carbon black manufacturer Columbian Chemicals in a deal that could close as early as next week. Negotiations are at the last stages with deal size expected to be around $900 million (Rs 4,100 crore). Aditya Birla Group is also in talks with several banks to tie up acquisition funds including Deutsche Bank, Royal Bank of Scotland and other foreign banks. JP Morgan is advisor to the deal.

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