Jan. 11, 2011 - Norwegian conglomerate Orkla ASA said Tuesday it has signed a deal to sell its Elkem unit to China National Bluestar for $2 billion.
The deal includes Elkem Silicon Materials, Elkem Foundry Products, Elkem Carbon and Elkem Solar, while Orkla will keep Elkem Energi AS and its 85% stake in AS Saudefaldene.
"It is important to secure that Elkem has a new owner able to further develop its potential and keep its competence and resources united," Orkla Chief Executive Bjorn M. Wiggen said in a statement.
"Bluestar has the best attributes to take advantage of the potential of Elkem's technological strength and competence", he added.
Orkla confirmed Monday it was in talks with China National BlueStar over the sale of Elkem businesses, which analysts expected would bring Orkla somewhere between NOK10 billion and NOK15 billion ($1.67 billion-$2.51 billion).
Elkem provides environment-friendly production of materials. Its principal products are solar grade silicon, silicon, special alloys for the foundry industry, carbon, microsilica and energy.
Bluestar is a China-based international chemicals and new materials company and is 80%-owned by state-owned company ChemChina, with the remaining 20% owned by U.S. private equity firm Blackstone Group.
Orkla shares closed Monday at NOK57.40, valuing the company at NOK59.06 billion.
