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UK-based Brunner Mond, part of Tata Chemicals Ltd, has today received the requisite regulatory approvals to complete the Rs 650-crore (£93 million) acquisition of Cheshire Salt Holdings Ltd (CSHL), parent company of British Salt.
The company, based in Middlewich, Cheshire and previously in the ownership of private equity firm, LDC, produces about half of UK's pure salt used in applications ranging from food processing to chemicals production. This complements Tata Chemicals-owned Brunner Mond's experience in manufacturing bulk products including soda ash and sodium bicarbonate.
Mr R. Mukundan, Managing Director, Tata Chemicals, said, the acquisition provides an opportunity to secure long-term brine supplies for Brunner Mond operations.
Apart from the core business of salt manufacturing and supplying, British Salt's profitability in the gas storage business makes this a promising business model which has the potential to generate additional cash flows for the enterprise, he added.
Shares of Tata Chemicals were down 0.20 per cent at Rs 379 on Wednesday.
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