Eight years after buying out French partner Danone from its flagship biscuit business, Nusli Wadia is now eyeing the stake of another European partner.
Wadia Group, one of India’s oldest business conglomerates, has agreed to acquire a 25% stake held by Belgium’s Solvay Chemicals in National PeroxideBSE 1.65 % in a deal that will mark the end of a 45-year-old partnership with the Brussels headquartered firm, multiple sources with direct knowledge of the transaction told ET.
Wadias, who currently control 45.4% in National Peroxide, one of India’s largest specialty chemicals manufacturers, will increase its holding to 70% post the transaction. Though the precise deal value isn’t known, as per Tuesday’s closing, the 25.1% of SolvayBSE 0.24 % in National Peroxide is valued at Rs 140 crore.
The deal, which is expected to be announced as early as Wednesday, will be an inter-partner off-market block transaction.
When contacted, Solvay did not comment, while a mail sent to Wadia Group did not elicit a response till the time of going to press.
Out of the 25.1% stake, which is likely to be acquired, 21.34% is being proposed to be bought by Nusli Wadia, while the remaining 3.76 % is proposed to be acquired by Nowrosjee Wadia and Sons Limited, sources said.
Solvay S.A. is amongst the global leaders in hydrogen peroxide business. Though the company holds 25% in National Peroxide, Solvay does not have any board representation and was no longer considered as an investment with a strategic intent, a source close to Solvay said.
“For Solvay, to align its presence in the Indian market in line with its global positioning of being a market leader, it had to either strategically re-calibrate its shareholding and enhance interest in National Peroxide to consolidate its position in the company, or alternately divest its stake and have operations independent of National Peroxide. They opted for the second option,” the source said.
Founded in 1863, Solvay is one of the world’s largest specialty chemicals and plastics maker.
National Peroxide was jointly promoted in 1956 by Bombay Burma Trading Corporation, the flagship company of Wadia group and Laporte Industries, UK. Solvay had a joint venture with Laporte, which it acquired in 1972 and thus inherited 25.1% stake owned by Laporte Industries in National Peroxide.
National Peroxide, currently controlled by the Wadia Group, is the largest domestic producer of hydrogen peroxide, with a current capacity of 95,000 MTPA and has a domestic market share of 45%. National Peroxide manufactures hydrogen peroxide of varying concentration, distilled hydrogen peroxide and sodium perborate catering to textiles, chemicals and paper industries, its website showed.
