Aditya Birla Group in talks to buy Columbian Chemicals: Report

Diversified Aditya Birla Group is in talks to buy US-based carbon black maker Columbian Chemicals for around $900 million, the Business Standard newspaper reported citing two sources.

The group, however, denied any such development.              

"The exclusive diligence is almost over. Finance for the deal is also expected to be tied up shortly," a source was quoted as saying in the report.   

The top management team from Aditya Birla's carbon black division is believed to be in the US finalising the diligence exercise at Columbian Chemicals, the paper said. 

According to Standard & Poor's, Columbian Chemicals is the world's third-largest carbon black manufacturer after Cabot and Evonik, the daily said. The closely-held company has around 9% global market share, it added.

Santrupt Mishra, CEO of the carbon black business of the Aditya Birla Group, denied any such move by the company.               

There is no substance to these rumours, which have been around for some time now, he was quoted as saying in the report.

Columbian Chemicals did not respond to queries, according to the report.

Reuters could not immediately get comments from Aditya Birla Group or Columbian Chemicals.