Birla has his name in the global scale in terms of aluminum and cement but Aditya Birla has other major plans. Aditya Birla wants to take up one more business and the business is carbon black,used in the manufacturer of typres. On Monday ,Aditya Birla group announced the acquisition of a US based company of carbon black called as Columbian Chemicals(CCC). Columbian Chemicals Company or CCC is the world’s largest carbon black entity and the deal was finalized. Aditya Birla and CCC came into a a deal worth of rupees of $875 million says the related reports associated with the matters.
However Aditya Birla group will be raise a debt for the acquisition because two out of three associate companies will have $450 million in debt. The two of the three associate companies will be having $450 million debt in their balance sheet and will be for funding the acquisition. For financing the transaction ANZ, Bank AM,HSBC ,RBS and StanChart will be providing and are the financial advisers for the acquisition. According to Birla the acquisition will yield the cost savings and will come up to about $50 million for each year. In spite of all these the deal will be helping Aditya Birla to leap from the modest position to number one position in the new field.
The new field is the carbon black and in terms of the volume post acquisition Aditya Birla Group will be facing a consolidation revenue. The consolidating revenue of Aditya Birla carbon Black will be about $2 billion and earnings along with tax,interest and depreciation and amortization will be $140 million. Birla is positioned at 3% higher than Massachusetts based company called Cabot and a higher of 47% compared to German based Evonik. The tenth largest company in the world is Birla in cements and is a dominant manufacturer of aluminum.
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