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News Topical, Digital Desk : Tata Chemicals Limited, a Tata Group company, announced after the stock market closed on Friday that its 100% owned subsidiary, Tata Chemicals International Pte. Limited (TCIPL), has signed a Share Purchase Agreement (SPA) to acquire a 100% equity stake in Singapore-based Novabay Pte. Limited. The acquisition will be made for approximately EUR 25 million. However, completion of the transaction is subject to the fulfillment of certain conditions set out in the SPA.
Novabay is a manufacturer of premium-grade sodium bicarbonate and is one of the largest in the Asia-Pacific region (excluding China). The company produces specialty grades for high-value sectors such as pharmaceuticals, personal care, and food. Novabay holds cGMP, API, and other necessary certifications, and its fully automated manufacturing facility is a strength.
What will Tata Chemicals benefit from this acquisition? Tata Chemicals' Managing Director and CEO stated that Novabay's focus on premium-grade sodium bicarbonate is fully aligned with Tata Chemicals' strategy to expand into the high-value and non-cyclical product segments. He stated that this acquisition will strengthen the company's capabilities in the specialty bicarbonate market and help it better meet the needs of premium customers. Currently, Novabay's production capacity is approximately 60,000 tons, which can be expanded to 100,000 tons in the future. Tata Chemicals believes this acquisition will strengthen the company's global presence and open up new growth opportunities.
Share Performance The company's shares closed at ₹763 on Friday, up 1.88%. Over the past year, the company's stock has declined 27.99%.
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