Orkla sells Elkem to China National Bluestar

OSLO, NORWAY: Orkla ASA has signed a binding agreement with China National Bluestar (Group) Co. Ltd (Bluestar) for the purchase and sale of Elkem.

The transaction comprises Elkem Silicon Materials, Elkem Foundry Products, Elkem Carbon and Elkem Solar. According to the agreement, the sales price is USD 2 billion for Elkem before closing- and capital structure adjustments.

The agreement includes the 1.5 TWh/year power contract Orkla acquired last year which will ensure that Elkem’s smelting plants in Norway will have a secure and long-term competitive power base. Orkla will remain the owner of the shares in Elkem Energi AS, including its 85 percent stake in AS Saudefaldene.

Bluestar is a leading China-based international chemicals and new materials company, with 2010 sales in excess of USD 6 billion and Head Office in Beijing. The company is 80 percent owned by the Chinese state-owned company ChemChina, with the remaining 20 percent owned by the US private equity firm Blackstone Group. Since 2006 Bluestar has performed a number of international acquisitions, including Adisseo and Rhodia’s Silicones business in France, and the Australian company Qenos.

Elkem will become an important part of Bluestar’s operations going forward. With this transaction Bluestar will strengthen its competitiveness in the silicone industry and broaden its footprint in adjacent markets. All of Elkem’s business areas and technologies are important for supporting the booming Chinese economy and will help the country in reaching its global climate targets.

Elkem Solar’s technology for the highly energy-efficient and environment-friendly production of solar-grade silicon reduces the risk of emitting environmentally damaging substances and enjoys a significantly lower energy consumption than traditional technologies. Elkem is in a worldwide leading position in this new technology.