Clariant to bring 5 arms under its fold

The speciality chemicals company, Clariant India has decided to merge five of its group companies in India, thereby becoming a single entity.

In a notice to the Bombay Stock Exchange (BSE), the company said it would merge BTP India and Colour-Chem with itself.

This means two subsidiaries of Colour-Chem, namely Vanavil Dyes and Chemicals and Kundalika Investments will also be merged with Clariant. The Clariant board took the merger decision at today's meeting.

Peter Lindner, president, Region Special Markets said in a media release:" We are confident that the combined entity will reinforce Clariant's position as a significant player in the speciality chemicals industry in India."

According to Clariant officials, the consolidation will give an impetus to the growth momentum of the group. The shareholders will benefit from Clariant's stronger position in the market which offers significant growth potential. India is one of the critical market for its parent company, Swiss based speciality chemicals group, Clariant AG.

Post merger, Lindner hopes to expand the company's activities and presence in India.The chemicals company expects new business opportunities to arise out of this proposed merger.

Clariant India has appointed valuers- Bansi Mehta & Co and N M Rajji & Co-both chartered accountant firms,to decide the share swap ratio.

The merger will be subject to all the requisite statutory and regulatory approvals including RBI, SEBI, the individual boards and the shareholders.

The boards of the companies would meet again at an early date to consider the final terms of the merger and the swap ratio.

After the development, the company's stock was up by 4 per cent to Rs 320.05 on the BSE.