SECTOR
Vishnu Chemicals signs definitive agreement to acquire Chrome Mining Complex
Nov-09-2024

Vishnu Chemicals has signed a definitive agreement to acquire a significant Chrome Mining Complex, comprising of Chrome Mine along with Processing, Mining and Infrastructure assets from Volclay Group of Companies in South Africa, through its wholly owned subsidiary Vishnu South Africa (Pty) (Vishnu SA) in a combination of share and asset deal.

Vishnu has ways believed in evolving to meet changing market requirements by staying agile and expanding its capabilities through both forward and backward integration, via organic and inorganic growth. The current acquisition of Chrome Mining Complex further exemplifies this agility, and will provide Vishnu with a reliable source of Chrome Ore, critical for its existing and future production needs. 

The subsidiary of Vishnu Chemicals will own 74% of the mining entity and 100% of the Chrome processing plant, along with the associated mining and infrastructure assets. In compliance with local regulations, foreign owned entities are permitted to hold up to 74% in South African Mining Operations. The transaction is executed on a debt-free, cash-free and liability-free basis and the total consideration shall not exceed $10 million (approximately Rs 84 crore), funded through existing cash and internal accruals. The acquisition is expected to be completed within 12 months, subject to customary closing conditions, including regulatory approvals.

Vishnu Chemicals pioneered manufacturing chrome chemicals like sodium dichromate, potassium dichromate, basic chromium sulphate and yellow sodium sulphate at its plants in Medak District in Andhra Pradesh and Bhilai in Chattisgarh.


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