Norwegian materials company Elkem has announced a definitive agreement to sell the majority of its Silicones division to its largest shareholder, China-based Bluestar, for a value of approximately US$1.02 billion. The transaction will be settled through the redemption of 338.3 million shares held by Bluestar, which represents 52.9% of Elkem’s total capital.
Following this transaction, the Chinese company would cease to be a shareholder in the Norwegian group.
In return for taking over the Silicones unit, Bluestar will cancel all its 338.3 million shares in Elkem, corresponding to 52.9% of the group’s capital, valued at US$1.02 billion.
“By divesting the majority of the Silicones division, we are simplifying our business, sharpening our strategic focus and allocating capital where we see strong long-term growth opportunities,” Elkem CEO Helge Aasen said in a statement.
Following the transaction, Elkem plans to raise 1.5 billion crowns from other shareholders, it said.
The transaction is expected to close by May 2026. Following the closure of the deal, Elkem will comprise of silicon products, carbon solutions, and others.
The Silicones entities being retained by Elkem and not included in the transaction are Yongdeng (Silicon Metal China), Roussillon (upstream Silicones in France) and Chakan (downstream Silicones 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. It will take effect upon the closing of the transaction, as well as to a renowned third party, ensuring economically viable operations that are expected to be earnings neutral.