Tata Chemicals, according to reports, is mulling to acquire the Archean Group's industrial salt unit, which may value the business at Rs 4.1 billion ($61 miliion), and is in advance talks with the firm.
Reports state that Tata Chemicals' board is all set to discuss the potential proposal by January-end. Currently, the negotiations between the two firms are going on, reported Business Standard.
MoneyControl could not independently verify the report.
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The Chennai-based debt-laden firm -- Archean -- has been trying hard for the last couple of years to service its debt obligation. Its website says that the firm is into the business spanning from industrial salt, fertilisers to mining.
Earlier in 2018, Bain Capital and Piramal Enterprises Ltd. formed a joint venture by name India Resurgence Fund and had invested $156 million in Archean’s marine chemical business.
Meanwhile, in October 2019, credit rating agency ICRA upgraded Archean’s rating by citing its operational improvements following the investment, however, pointed the firm's capital structure remains highly leveraged.
Archean Group's industrial salt unit has a capacity of 3 million metric tons. The unit also manufactures products that range from detergents, textile dyes to plastics and glass.
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