Bluestar set to take over Elkem Silicones

Oslo – Elkem ASA is to sell the majority of its Silicones division to Bluestar in a cash-free deal involving redemption of the Chinese group’s 52.9% stake in the Oslo group.

With the transaction, which is expected to close by May 2026, Elkem will become a “focused, pure play metals and materials company.”

Under the deal, which follows a previously announced strategic review of the Silicones division, Bluestar will no longer any shares in the group, added Elkem’s 13 Feb announcement.

An EGM is to be held on 9 March to approve the share-purchase agreement and resolve the redemption of Bluestar's shares, noted Elkem.

Covered by the transaction are employees, assets, rights and liabilities of the Silicones unit worldwide, for which APAC is the largest market.

“We are simplifying our business, sharpening our strategic focus and allocating capital where we see strong long?term growth opportunities,” said Elkem CEO Helge Aasen.

The agreement, added Aasen, “also delivers the most favourable outcome for the Silicones division positioning the business for accelerated specialisation and growth.”

Silicones entities being retained by Elkem include: Silicon Metal China in Yongdeng, China; its upstream silicones operation in Roussillon, France; and Chakan downstream silicones unit in India.

For Roussillon, Elkem has entered into a five-year supply agreement of upstream silicones to the downstream business to be acquired by Bluestar.

Elkem Silicones is a global supplier of silicone-based rubber materials and compounds, as well as chlorosilanes, oils and emulsions among other products.

Back in 2017, Bluestar Silicones was renamed Elkem Silicones under a move that saw two of the Chinese group’s entities integrated into the Elkem group (ERJ report).

More to follow…