The board of directors of the Indian arm of Swiss company Clariant Chemicals agreed to sell the company’s Masterbatches business in India to PolyOne Polymers for ₹4 billion (US$60 million). The sale by the specialty chemical company of its masterbatch business was carried out by way of a business transfer on a going-concern basis.
“The transaction was structured as a hive-off as opposed to a share sale,” said a lawyer from AZB & Partners who worked on the deal. “Clariant operates multiple verticals in India.”
AZB & Partners advised PolyOne and partners Sai Krishna Bharathan, Vivek Bajaj, Aditya Singh Chandel and Akansha Aggarwal acted on the deal along with senior associate L Vydyanathan.
Chandhiok & Mahajan acted for Clariant Chemicals (India). The firm was represented by managing partner Pooja Mahajan, corporate partner Kaushalya Venkataraman, and associates Jagrat Rawal and Shivani Pathak. Head of competition law, Karan Singh Chandhiok, advised on the global merger control aspects of the transaction.
The deal is part of a global transaction for the sale of its entire Masterbatches business, which is valued at US$1.5 billion. The proceeds from the intended divestments of Clariant’s non-core businesses will be used to invest in innovations and technological applications within the core business areas of care chemicals, catalysis and natural resources to strengthen Clariant’s balance sheet and return capital to shareholders.
Clariant Chemicals (India) is listed on the stock exchanges in India, with Clariant AG holding a 51% controlling stake. The closing of both transactions is subject to customary closing conditions and regulatory approvals.
Clariant’s Masterbatches business offers colour and additive concentrates and performance solutions for plastics. In the financial year 2018, the total Masterbatches business generated sales of around US$1.1 billion.