GHCL is considering acquisition of Romanian soda ash maker Uzinele Sodice Govora (USG). This transaction, once materialized, will be GHCL’s second buyout in that country after its takeover of a 300,000 tonne soda ash company SC Bega Upsom SA in December 2005. USG is a 200,000 tonne soda ash producer. It has mortgaged its assets with GHCL to tide over its financial crisis. The proposed acquisition is part of the company’s target to quadruple its capacity to 4 mn tonnes by next year.
The company is also in talks with soda ash companies in China and the US which are likely to be over by June. In addition to soda ash, GHCL is also eyeing acquisition of home textile retail chains in Europe and the US to become an integrated home textiles company with presence across spinning, weaving, designing, sourcing and distribution.
In the last one-and-a half years, GHCL has spent about $165 mn (Rs. 730 crores) on foreign buyouts. The list includes UK-based largest home textile retail chain company Rosebys with 300 stores, and the US-based textiles company Dan River.
Read the article in Business Standard.
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