Atofina buys out Indian partner in AAC joint venture

16 September 2004 06:09  [Source: ICIS news]

NEW DELHI (CNI)--French chemical major Atofina has bought out Indian partner Aroni Chemical Industries in their joint venture, Atofina Catalyst India Ltd (Atocil).

 

The purchase makes the French major the world’s largest producer of anhydrous aluminium chloride (AAC).

 

Aroni announced to the Bombay Stock Exchange it had sold its equity stake in Atocil and also “settled outstanding matters with regard to this investment” at a price of Rs166.2m ($3.6m/Euro2.9m). The company did not disclose any additional information.

 

Atocil has thus become a 100%-owned subsidiary of the French major. Aroni formerly held a 48.99% equity stake in Atocil.

 

The two former partners entered a joint venture in 1999 to acquire Aroni’s existing AAC business. Atocil operates a 17 000 tonne/year AAC plant at Nagda in Madhya Pradesh.

 

This plant, coupled with parent company’s 23 000 tonne/year AAC plant at Jarrie in France, has transformed Atofina into the world’s largest producer of what is regarded as a versatile catalyst.

 

AAC is used in the manufacture of petrochemical intermediates such as ethylene benzene, cumene and linear alkyl benzene (LAB). It is also used in synthesis of pigments such as titanium dioxide, agrochemical intermediates such as metaphenoxybenzaldehyde, and pharmaceuticals such as ibuprofen.

 

This is the second time Atofina has transformed an Indian joint venture into a wholly-owned subsidiary.

 

In 2002, it increased its stake in an organic peroxides joint venture, Atofina Peroxides India, to 100% from 51% by buying out partner Chemplast Samnar’s 49% stake.

By: Naresh Minocha
+65 6780 4359

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