Basic Chemical Industries Co. (BCI) signed a non-binding letter of intent (LoI) with the companies owning Union Chlorine LLC for the acquisition of a 49% stake, according to a stock exchange filing.
The financial details of the deal were not disclosed.
Union Chlorine LLC is a chlor-alkali manufacturer based in Abu Dhabi, United Arab Emirates. The owner companies are Oman Chlorine SAOG, Horizon Energy LLC, MS Union Chlorine and Oman Industrial Development Company SAOC.
The LoI will be in effect for 90 days from 13 July, during which BCI will conduct a due diligence on the Abu Dhabi-based company.
The acquisition should help BCI diversify its product base to include calcium chloride, and expand its markets to the UAE and access the export base of Union Chlorine.
BCI manufactures chlorine gas, hydrochloric acid, caustic soda, and sodium hypochlorite at a site near Dammam.