UK-based Tata Chemicals Ltds (TCL) arm Bruner Mond has proposed to acquire a 100 per cent stake in British Salt for around Rs 650 crore (nearly 93 million pounds) by this month-end. The acquisition will not only help Tata Chemicals to strengthen its presence in the processed food market but also help Bruner Mond to maintain a low-cost manufacturing position in Europe. We hope the deal will be over by this month-end. And it will also help the overall financial position of our European operations, TCL,MD,R Mukundan said on Monday. Bruner Mond is a global manufacturer and supplier of soda ash,sodium bi-carbonate and other alkaline products. The deal funded entirely through debt has been structured through Tata Chemicals Europe Holdings Ltd. The companys revenue is expected to grow by 35 million pound this calender year,with a 17 million pound of EBITDA (earnings before interest,tax,depreciation and ammortisation). Its current revenue is about 35 million pound, Mukundan said,adding that while pure dried vacuum salt products maker British Salt owns brine wells in the UK with residual life of 50 years this acquisition will provide an opportunity to secure long-term brine supplies for Bruner Mond. Market sources said that after the acquisition,British Salt would be able to supply salt to Bruner Mond which,at present,has a supply deal with another leading manufacturer Ineos. We hope British Salt will augur the business well by supplying salt to Bruner Mond as the current deal of the company will expire in 2016. Besides,the core business of salt making,British Salt is also active in the gas storage business and has a potential to generate additional cash-flows for the business, Mukundan said.
