Rain Calcining to merge with Rain Commodities

Hyderabad-based Rain Commodities will merge Rain Calcining with itself in an effort to bring together the group’s calcined petroleum coke (CPC) and cement businesses for better viability. The merger, effective April 1, will create the world’s largest CPC making company with assets in India, Kuwait, the US and Argentina. It will enjoy nearly 28% of the total CPC sales in the Western World.

Under the merger plan, Rain Industries’ cement business will be transferred to Rain Commodities, while Rain Calcining’s CPC and power generation businesses will be transferred to Rain Industries. Rain Industries is the cement making unit of Rain Commodities. Rain Commodities will appoint financial and legal advisors for determining the share exchange ratio. The merger decision is a reversal of an earlier proposal to amalgamate Rain Industries with Rain Commodities.

Rain Calcining makes 480,000 tonnes of anode and industrial grade CPC per annum. CPC is a key process input used in the aluminium and steel industries. Earlier this week, Rain Commodities said it would acquire assets of Toronto-based Great Lakes Carbon Income Fund’s wholly-owned subsidiary Carbon Canada, Inc. for Canadian $ 437 mn (See Related Post).

Read article in Business Standard.