Tata Chemicals Limited (TCL), part of the TATA group, has entered into definitive agreements to acquire the Soda Ash business of General Chemical Industrial Products Inc. (GCIP), a US based chemical company, for $ 1,005 million. Harbinger Capital Partners is GCIP's majority shareholder. The transaction is subject to shareholder and regulatory approvals.

GCIP's subsidiary, General Chemical (Soda Ash) Partners (GCSAP), is a significant Soda Ash producer in the USA with a capacity of 2.5 million TPA of Natural Soda Ash. GCSAP has mining and manufacturing facilities located at Green River Basin in Wyoming, USA, which provides it access to the world's largest and most economically recoverable trona ore deposits that is then converted into Soda Ash.

The acquisition of GCIP will lead to a sizeable increase in TCL's global soda ash capacity making it one of the largest Soda Ash producers worldwide. Over 50 per cent of this capacity will be from the natural route, which is a significantly more economical route of producing Soda Ash than the synthetic route and is a natural hedge against the commodity cycle. This acquisition, together with its other global soda ash facilities, will give TCL a unique market position

The merger will provide TCL access to markets in North America, Latin America and the Far East which complement its existing markets.

About GCSAP:
GCSAP is one of the few manufacturers of natural soda ash and has a capacity of 2.54 mn metric tons (2.8 mn short tons). GCSAP shares the Green River Basin with three other large producers of soda ash: OCI Chemical Corporation, FMC Corporation and Solvay Mineral. The Company has significant reserves of extractable trona ore from its current mines for which it has long term Federal, State and private leases. The Company, which has a strong and committed management team with a high focus on performance excellence.

About Tata Chemicals Limited:
Part of the $ 28 billion Tata Group, Tata Chemicals Limited is India's leading manufacturer of inorganic chemicals, fertilizers and food additives. The company recorded a consolidated turnover of close to Rs 6000 cr for year ending March 31, 2007. TCL's chemicals business accounts for 56 per cent of global revenues. The fertilisers business contributes towards the remaining 44 per cent.

The soda ash business generates approximately 40 per cent of the consolidated revenues of TCL. TCL is currently one of the world's largest soda ash producers with a combined capacity of 2.9 MTPA. The company has four soda ash facilities located at Mithapur (India) Northwich (UK), Netherlands and Lake Magadi (Kenya). The facilities outside India were acquired as a part of Brunner Mond Group Limited, UK (BMGL) in Dec 2005. TCL is also the market leader in edible salt. The company uses waste from its soda ash facility as feedstock for its 0.4 MTPA cement plant in Mithapur. The fertilizer plants are located at Babrala, UP (urea) and Haldia, West Bengal (phosphatic fertilizers).

Advisers:
Lazard and Standard Chartered Bank acted as financial advisers to TCL on the transaction.