38.6c New Delhi, India, Sunday, September 25, 2022
Top Stories
Interviews Know The Law Book Reviews Videos
About Us Contact Us
Business

Haldia Petrochemicals Ltd. Acquires U.S. Based Petrotech Giant Lummus Technology

By Harshil Jain      Jul 03, 2020      0 Comments      1,455 Views
Haldia Petrochemicals Ltd. Acquires U.S. Based Petrotech Giant Lummus Technology

Haldia Petrochemicals Ltd. (HPL), along with an international partner Rhone Capital, has acquired the U.S. based company Lummus Technology. The deal took place at an enterprise value (EV) of USD 2.7 billion (approximately Rs 20,590 crore). This is the biggest acquisition by an Indian company this year.

HPL will acquire a 57 percent stake in Lummus, whereas, the rest will be with its partner Rhone Capital. In addition to this, the deal includes refinancing of entire debt of Lummus by the acquirers. 

Haldia Petrochemicals is a flagship company of The Chatterjee Group (TCG) in West Bengal. Apart from the current acquisition, the company was in the fray for the multinational chemical giant Basell in 2005-06. Currently, it has an ultra-modern petrochemical facility situated in Haldia. The company's present turnover crosses the Rs 12,000 crore mark. The present deal will help HPL diversify its operations.

As it is been said, the acquisition of Lummus is a new feather in the cap for HPL, which was on the verge of BIFR (Board for Industrial and Financial Reconstruction) in 2013. However, the company made a turnaround after its takeover by TCG in 2014-15, and it has been making continuous profits since then.

SBI Chairman and lead banker in the deal, Mr. Rajnish Kumar, said, “Acquisition of Lummus, world’s premier petrochemicals company, by Haldia Petrochemicals is a landmark achievement by an Indian company.”

Founder Chairman of TCG Mr. Purnendu Chaterjee said, “Our investments are both strategic and long term, most of which span across 25 to 30 years. We have primarily focused on knowledge-based enterprises, and as such Lummus is a great addition to our portfolio. Leading with innovation, it delivers sustainable value to clients in the areas of materials technology. HPL being a long-term client of Lummus can share its customer experience and collaborate with Lummus to co-create innovations for the benefit of the industry.”

"It is indeed a proud privilege for HPL to be associated with Lummus Technology, the prestigious licensor of several proprietary technologies in the refining, petrochemicals, and gas processing segments," said Mr. Subhasendu Chaterjee, whole-time Director, HPL.

A top official in HPL said that the companies together would be capable of providing a more competing "value proposition" to the clients of Lummus, in India as well as in abroad. HPL’s policy initiative to pivot upstream investments in the ‘oil to chemical’ sector is likely to get a major boost that will be resulting from our association with Lummus, he added.

With a legacy spanning over a period of 110 years, 

the US Petrotech giant, Lummus Technology, is a leading master licensor of proprietary technologies in several sectors, such as refining, petrochemicals, gas processing, and coal gasification. The company has around 130 licensed technologies and more than 3,400 patents and trademarks.

Lummus Technology head, Mr. Leon de Bruyn, said, "For our customers, employees, and partners, this is an important milestone. We would be able to focus exclusively on providing world-class technologies and solutions and developing long-term strategies that will allow Lummus to lead and shape the future of our industry."



Tags:
Haldia PetrochemicalsJoint Venture
Share this article:



Leave a feedback about this




Related Posts
View All

TRENDING NEWS


TOP STORIES


ADVERTISEMENT


Lawstreet Advertisement

Signup for Our Newsletter

Get Exclusive access to members only content by email