Mumbai: Tata Chemicals today announced the completion of acquisition of US-based General Chemicals Industrial Products for little over $1 billion, making the Indian firm the world's second largest producer of soda ash.

The Tata Group firm had signed a definitive agreement to buy out the American company two months ago. Tata Chemicals Managing Director Homi Khusrokhan said the company has managed to arrange funding for the acquisition in a record time without taking recourse to equity. The company raised funds through internal accruals, by way of external commercial borrowing, selling of investments and bridge loan. The ECB was raised at Libor plus 1.35 per cent, which works out to only about four per cent, he said.

The repayment of the loan will be made out of cash flow generated from the operations of General Chemicals and thus the parent company's finances will remain unaffected, he said.

The acquisition is expected to boost the sales of Tata Chemicals by about $400 million, while earnings before interest, tax and depreciation will go up by some $120 million. Khusrokhan said the market for soda ash, which goes into making of products like detergents and glass among others, is booming.

Source : PTI