Tata Chemicals Limited announced that its Singapore subsidiary will acquire 100 percent of Singapore-based Novabay for an enterprise value of €25 million. The acquisition marks a strategic step in Tata Chemicals’ efforts to expand its presence in high-value, non-cyclical product segments.
Deal Structure and Timeline
The transaction, signed through a share purchase agreement (SPA), will see Tata Chemicals International Pte. Limited (TCIPL)—a wholly owned subsidiary of Tata Chemicals—acquire the entire equity share capital of Novabay, subject to customary regulatory approvals and closing conditions. The company expects to complete the acquisition by March 2026, following the fulfilment of conditions outlined in the SPA. Currently, Novabay operates as a wholly owned subsidiary of France-based Novacarb.
Funding and Valuation
Tata Chemicals will fund the acquisition entirely through cash. While the agreed enterprise value is set at €25 million (approximately S$37.8 million), the final consideration will remain subject to adjustments for net debt, working capital, and other standard closing items. Following completion, Novabay will become a 100 percent subsidiary of TCIPL and an indirect subsidiary of Tata Chemicals.
Strategic Rationale
As reported by theweek.in, Tata Chemicals Managing Director and CEO R. Mukundan said Novabay’s focus on premium-grade sodium bicarbonate “aligns seamlessly” with the group’s strategy to scale up its portfolio in high-value, non-cyclical segments. He added that the acquisition is expected to accelerate Tata Chemicals’ long-term growth and strengthen value creation for stakeholders.
