Lawstreet Journal

Haldia Petrochemicals Ltd. Acquires U.S. Based Petrotech Giant Lummus Technology

Lawstreet Journal 3 Jul 2020 9:47pm

Image courtesy: Lawstreet Journal Business Haldia Petrochemicals Ltd. Acquires U.S. Based Petrotech Giant Lummus Technology

Haldia Petrochemicals Ltd. (HPL), along with an international partner Rhone Capital, has acquired the U.S. based company Lummus Technology. The deal took place at an enterprise value (EV) of USD 2.7 billion (approximately Rs 20,590 crore). This is the biggest acquisition by an Indian company this year.

HPL will acquire a 57 percent stake in Lummus, whereas, the rest will be with its partner Rhone Capital. In addition to this, the deal includes refinancing of entire debt of Lummus by the acquirers. 

Haldia Petrochemicals is a flagship company of The Chatterjee Group (TCG) in West Bengal. Apart from the current acquisition, the company was in the fray for the multinational chemical giant Basell in 2005-06. Currently, it has an ultra-modern petrochemical facility situated in Haldia. The company's present turnover crosses the Rs 12,000 crore mark. The present deal will help HPL diversify its operations.

As it is been said, the acquisition of Lummus is a new feather in the cap for HPL, which was on the verge of BIFR (Board for Industrial and Financial Reconstruction) in 2013. However, the company made a turnaround after its takeover by TCG in 2014-15, and it has been making continuous profits since then.

SBI Chairman and lead banker in the deal, Mr. Rajnish Kumar, said, “Acquisition of Lummus, world’s premier petrochemicals company, by Haldia Petrochemicals is a landmark achievement by an Indian company.”

Founder Chairman of TCG Mr. Purnendu Chaterjee said, “Our investments are both strategic and long term, most of which span across 25 to 30 years. We have primarily… Continue Reading...


Tagged: Haldia Petrochemicals   Joint Venture  
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