Basic Chemical Industries (BCI) has signed a non-binding letter of intent with Union Chlorine's owners to acquire 49% of that company's ownership.
According to Arabiya Net, BCI said in a statement that Union Chlorine is a manufacturer of chlor-alkali based in the United Arab Emirates - Abu Dhabi.
It added that it had signed a letter of intent with the companies owning Union Chlorine, namely Oman Chlorine, Horizon Energy, MS Union Chlorine and the Oman Industrial Development Company.
It clarified that the purpose of the letter of intent was to facilitate discussions and reach a final agreement to acquire 49% of the ownership of Union Chlorine for Basic Chemical Industries.
Basic Chemical Industries said it would conduct due diligence to determine the financial impact of the acquisition on Basic Chemicals.
The deal aims to diversify BIC's product and market base by adding the UAE as a production market, and accessing Union Chlorine's extensive export base.< /p>
It also aims to increase the productivity of BCI's core products such as caustic soda and hydrochloric acid, as well as add a new product calcium chloride to BCI's portfolio.
