The Aditya Birla Group has announced that it will acquire Atlanta-based Columbian Chemicals Company, from One Equity Partners, the merchant banking arm of J P Morgan Chase.  The financial value of the deal was not disclosed, but analysts estimate it at around $800-900 million (Rs.3,600 crore – Rs. 4,050 crore).

Shearman & Sterling represented their long-standing client Aditya Birla. New York M & A Partner Stephen Besen led the Shearman team. Speaking to Bar & Bench, Stephen Besen said, “There is still a long way to go before we close the transaction and we hope that Aditya Birla Group is able to boost their business with this acquisition”. Since the deal envisaged competition law advisory in Europe, London based Partner Matthew Readings also joined the advisory team. The team also included Finance Partner Steven Sherman, Executive Compensation Partner John Cannon, Tax Partner Peter Blessing and counsel Lisl Dunlop.

Columbian Chemicals is controlled by One Equity Partners and according to Bloomberg is the third largest maker of Marietta while Aditya Birla Group is the fourth-largest producer. Simpson Thatcher & Bartlett represented One Equity.

According to a VCCircle report, DC Chemical, a South Korean petrochemical company and One Equity Partners jointly bought Columbian Chemicals for about $600 million (Rs. 2,700 crore). In January 2009, One Equity bought DC Chemical’s entire stake for close to $150 million (Rs. 675 crore).

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