Rain Calcining acquires US-based CII Carbon

MUMBAI: Calcined petroleum coke maker Rain Calcining on Friday said it has completed the process of acquiring US-based CII Carbon for about $595 million in cash.

With the completion of this acquisition, Rain Calcining has become the largest manufacturer of calcined petroleum coke in the world, the company informed the Bombay stock Exchange (BSE).

The combined companies would constitute the world's largest producer of CPC, with just over 2.4 million MT per annum of CPC production and annual sales of USD 550 million, it said.

However, the cash purchase price is subject to certain adjustments, it added.

Earlier on June 3, the company had said its subsidiary Rain/CII Holdings had entered into a definitive securities purchase agreement on June 1, to acquire CII Carbon for a cash purchase price of USD 595 million.

Rain Calcining also said its US subsidiary Rain Commodities has invested USD 92 million in convertible redeemable and non-voting preferred stock in Rain/CII Holdings in connection with the financing of the acquisition.

The acquisition would enable Rain Calcining to capture many synergies and growth opportunities from the overseas calcining company, it said.

The acquisition financing was arranged by Citi and ICICI. Shares of Rain Calcining were trading at Rs 42.60, down 0.35 per cent, on the BSE this morning.