Tata Chemicals Ltd (TCL) today said its UK subsidiary, Brunner Mond, has inked an agreement to acquire British Salt Ltd for GBP 93 million (about Rs 656.48 crore).
"TCL's wholly owned subsidiary Brunner Mond, UK (BMUK), has signed a binding agreement to acquire a 100 per cent stake in British Salt Ltd, UK, subject to requisite regulatory approvals," TCL said in a filing to the Bombay Stock Exchange.
The acquisition will be financed entirely through debt, with no recourse to TCL, the filing added.
Pure dried vacuum salt manufacturer British Salt owns brine wells in the UK with a residual life of 50 years and is also active in the gas storage business.
The buy-out will ensure long-term supply of brine for soda-ash manufacturer Brunner Monds' operations, the filing said.
Bolstered by the development, shares of TCL jumped by 2.23 per cent to touch an early high of Rs 379.45 on the BSE today