US Chemtura waiting for India to allow acquisition of bromine assets

31 July 2013 17:37  [Source: ICIS news]

HOUSTON (ICIS)--Chemtura is still waiting for authorities in India to allow its “critical” acquisition of the bromine assets of India’s Solaris ChemTech, the CEO of the US-based specialty chemicals firm said on Wednesday.

Chemtura had announced the Solaris deal in September 2012, saying at the time it expected completion by end of 2012.

However, authorities in India’s Gujarat state have yet to grant permits for necessary land lease transfers. The transfers are a closing condition for the deal.

“We expect [the acquisition] still to close, we are waiting for the [Indian] government to move,” CEO Craig Rogerson said during Chemtura’s Q2 results conference call.

“And we are not just waiting, we are actively working with our partners” at Solaris, he added.

Rogerson said that the acquisition remained critical for Chemtura’s strategies to build up capacities in the bromine industry.

For the three months ended 30 June, Chemtura’s sales of bromine-based and related products fell 19% year on year to $160m (€120m), mainly because of lower sales volumes and lower selling prices associated with brominated flame retardants for insulation foam and electronic applications.

Bromine-based products make up the bulk of sales in Chemtura’s Industrial Engineered Products segment, which saw its Q2 sales drop 15% to $201m. The segment’s 2013 second-half performance will depend upon improvements in demand from insulation foam and electronic applications, Chemtura said.

($1 = €0.75)

Additional reporting by Jeremy Pafford

By: Stefan Baumgarten
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