Huntsman to buy Metrochem arm

Huntsman Corp, the $13-billion global chemical major, will buy the textile-dye and intermediates division of Metrochem Industries Ltd for $46.5 million in cash.
The transaction is expected to close in January 2008. The Vadodara division of Metrochem employs 300 associates.

Asit Adhikari, country manager, Huntsman Advanced Materials, told DNA Money from Europe: “The Huntsman group wants a greater participation and wants to enter the Indian textile story in a bigger way. The group has bigger plans for India. “The acquisition further strengthens Huntsman’s textiles business and will provide a secure supply of finished products for global markets and intermediates for other Huntsman manufacturing sites globally.”

Last week, Huntsman agreed to be acquired by billionaire Len Blavatnik’s Access Industries Holdings for $5.88 billion in cash.