Blackstone investee buys Norwegian firm

According to a company statement, the deal aims to bolster Elkem's competitiveness in the global silicon industry, and expand its footprint in worldwide markets. Elkem's business, meanwhile, will also aid China in its mission to become a global leader in renewable energy production. As part of the deal, BlueStar will specifically acquire Elkem Silicon Materials, Elkem Foundry Products, Elkem Carbon and Elkem Solar.

Beijing-based Bluestar, which claimed more than $6 billion in 2010 sales, is 80% owned by state-run ChemChina, and is 20% owned by Blackstone. Other large-sized deals of the same type of late include the $1.8 billion acquisition of Volvo's automobile unit by Zhejiang Geely's last year, and the 2009 acquisition of Switzerland's Addax Petroleum by Sinopec for $7.2 billion.

"Combining Bluestar with Elkem will be of great benefit to both companies: for Elkem, its access to Asia, and especially China, will be significantly enhanced going forward, which is a real advantage given the size and growth of China and Asia for most of Elkem's products," Ren Jianxin, President of ChemChina and Chairman of Bluestar, said publicly. "For Bluestar, the combination with Elkem will give it access to Elkem's excellent management experience and industry-leading technological know-how."

According to the company, since 2006 Bluestar has made a handful of international acquisitions, including Adisseo and Rhodia's Silicones business in France, and the Australian company Qenos. Its Elkem acquisition is subject to government approval. RBS acted as Bluestar's financial advisor in the deal while Moelis & Company advised Orkla.

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• Topics
• Buyouts
• Greater China
• Cleantech
• Europe
• The Blackstone Group