December 30, 2019 / 9:06 AM / 19 days ago

UPDATE 1-Silicone-maker Elkem buys China's Polysil in all-share deal

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OSLO, Dec 30 (Reuters) - Norway-based Elkem, a supplier of silicone and silicon materials, has agreed to acquire Polysil, a Chinese maker of silicone elastomer and resins, in an all-share deal valuing it at 941 million yuan ($135 million), Elkem said on Monday.

Elkem, which is majority-controlled by China’s Bluestar, provides silicon materials to the electronic and transport industries, among others. Polysil provides silicone used in baby care and food-packaging products.

“Polysil and Elkem’s complementary product and market positions provide a solid platform for further specialisation and growth in China and globally,” Elkem said in a statement.

Polysil is expected to generate 2019 earnings before interest, tax depreciation and amortisation of 110 million yuan on operating revenue of 612 million yuan, it said.

The deal is expected to close in the first quarter of 2020.

$1 = 6.9879 Chinese yuan renminbi Reporting by Gwladys Fouche, editing by Louise Heavens and Jason Neely

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