AkzoNobel India Transfers Specialty Chemicals to Affiliate
AkzoNobel India will transfer its specialty chemicals operations to an affiliate of its parent company for 3.2 billion rupees ($49 million), according to a statement filed with the Bombay Stock Exchange. The transaction is expected to complete by Mar. 31, 2018.
The transfer includes a polymer chemicals manufacturing facility in Mahad, western India, and a trading portfolio of polymer and surface chemicals, which are sourced from other units of AkzoNobel. About 80 employees that currently work for the business will also transfer under the deal.
The move is tied to the Dutch group’s plans to spin off its specialty chemicals operations. AkzoNobel said it believed it to be in the best interest of its shareholders, employees and customers to transfer the Indian business to a global specialty chemicals entity in view of the pending split.
The spin-off is expected to be completed by April 2018 and could occur through either a private sale or a demerger. The plans are not affected by a proposed merger with US-based Axalta Coating Systems. AkzoNobel confirmed on Oct. 30 that the two companies were engaged in “constructive” discussions.