Tata Chem raises Rs 3,400 cr for US buy

Tata Chemicals plans to achieve financial closure in the next couple of days for acquiring US-based General Chemical Industrial Products, according to Managing Director Homi Khusrokhan.

The company acquired General Chemical Industrial Products for $1 billion (about Rs 4,000 crore) early this year.

Khusrokhan said Tata Chemicals would raise $850 million (about Rs 3,400 crore) in debt to fund the acquisitions, but declined to give details.

"We will be announcing the closure of the deal in two-three days, only then I'll be able to provide details of the funding," he said.

Khusrokhan was speaking at a seminar, where Commerce Secretary G K Pillai was also present.

The acquisition of General Chemical will make Tata Chemicals the second largest maker of soda ash in the world.

The company currently produces 875,000 tonnes of soda ash annually and plans to raise the output to 1.2 million tonnes by optimising use of its current capacities in Mithapur, Gujarat, and Kenya.