Tata Chemicals US Subsidiary's $21.16 Million Acquisition of Soda Ash Contracts Approved

en.Wedoany.com Reported - On August 29, Tata Chemicals confirmed in an exchange filing that its wholly-owned subsidiary, Tata Chemicals North America Inc. (TCNA), has been named the winning bidder in the Chapter 11 bankruptcy proceedings of Searles Valley Minerals Inc. (SVM) under the U.S. Bankruptcy Code, and intends to acquire certain soda ash contracts and related commercial rights held by SVM for North American customers. The contracts involve customer orders exceeding 500,000 tons, with service periods running from September 2026 through December 2028.

TCNA has entered into an Assignment and Assumption Agreement (ASA) with SVM, with a total cash consideration of $21.16 million. The U.S. Bankruptcy Court for the District of Delaware has approved the transfer and assumption of the relevant customer contracts by TCNA, though completion of the transaction remains subject to customary closing conditions and other terms set forth in the ASA.

The scope of this transaction includes, in addition to the designated soda ash customer contracts, related commercial rights, customer information, demand forecasts, logistics records, and ancillary benefits under the contracts, with all involved customers located in North America. Tata Chemicals confirmed that neither the company's controlling shareholder, the controlling shareholder group, nor any group company holds any interest in SVM or in the customer contracts being acquired, and that this transaction does not constitute a related-party transaction.

According to transaction information released concurrently by Tata Chemicals, the soda ash contracts exceeding 500,000 tons are expected to generate over $110 million in revenue for TCNA during the period from September 2026 to December 2028. Based on the cash consideration of $21.16 million, the subject of the transaction is not soda ash production facilities, but rather SVM's existing customer contracts and related commercial rights.

TCNA's soda ash manufacturing operations are located in Green River, Wyoming, U.S., where the company operates natural soda ash mines and production facilities. According to Tata Chemicals, its Green River facility covers approximately 55 square miles and includes natural soda ash mining, processing, and soda ash sales operations.