Fairfax India Holdings Corp. is investing $300-millionfor a 30% Sanmar Chemicals Group stake through wholly-owned subsidiaries.
Fairfax cannot invest above 25% of its assets in a single investment. Its current limit is around $250-million. According to the company, it will spend an amount of $250-million once the deal is closed. Later, it will invest $50-million within 90 days through subsidiary Fairfax Financial Holdings Ltd.
The first investment amount may complete by this year’s Q2.
At present, Sanmar has 300,000 t/y as its total polyvinyl chloride (PVC) capacity at India’s Mettur and Cuddalore facilities. The company plans to increase its Egyptian PVC capacity from 200,000 t/y to 400,000 t/y. Sanmar also produces caustic soda, ethylene, and other chemicals.
“Once the expansion is completed, Sanmar will have a total capacity of over 700,000 t/y, making it among the largest PVC companies in the world,” said Fairfax.