China National Bluestar Group Co Ltd, a subsidiary of ChinaChem Group Corporation and Orkla ASA have signed a binding agreement on Bluestar's buying of Elkem, Bloomberg reported.
Elkem's main products are silicon, solar grade silicon, and special alloys for the foundry industry.
The sales price is $2 billion. The transaction comprises Elkem Silicon Materials, Elkem Foundry Products, Elkem Carbon and Elkem Solar.
The agreement includes a 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, accoding to the website of Elkem.
Orkla will retain its shares in Elkem Energi AS, including the 85 percent interest in AS Saudefaldene.
The purchase price for the shares will be paid in cash, according to Bloomberg.>
