US OM Group exits cobalt business with $325m cash deal

29 March 2013 21:47  [Source: ICIS news]

HOUSTON (ICIS)--US specialty chemicals producer OM Group said on Friday it has completed the divestiture of its advanced materials business and sale of its downstream business in a $325m (€254m) cash deal to joint venture Freeport Cobalt.

Freeport-McMoran Copper & Gold (FCX) is the operator of the joint venture with a 56% interest, FCX said. Lundin Mining holds a 24% interest, while La Generale des Carrieres et des Mines (Gecamines) the remaining 20%.

In addition, OM Group said it has also transferred its interest in Democratic Republic of the Congo-based GTL, a cobalt processing joint venture with Gecamines and Group George Forrest of Belgium/DRC.

OM Group will continue to serve as an intermediary supplier between GTL and Freeport Cobalt for two years and be a US distributor of refined cobalt products for one year, the company said.

In addition to the cash deal, OM Group will receive about $30m for cash retained in the business, as well as potential future cash consideration of up to $110m.

($1 = €0.78)

By: Tracy Dang
+1 713 525 2653

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