India’s Tata Chemical is buying the chemical company Indian Chemical Corp, the largest producer of chemical fertilizers in the country, for $15.9 billion.
The deal was announced Thursday, a day after India announced its first approval of a new pesticide formulation to combat the coronavirus.
The announcement came a day before the deadline for submitting a final regulatory approval to the World Health Organization.
Tata Chemicals, a subsidiary of Tata Group Ltd., said the deal was in the “very early stages.”
Tata Chemies has more than $12 billion in revenue, including a $7.3 billion operating profit in 2016.
Tata Chemical will buy the company for an undisclosed sum, the company said in a statement.
The acquisition, to be valued at $1.8 billion, is expected to close in 2020.
TataChemical chief executive V. V. Raman, a veteran of the company’s chemical portfolio, will remain on the board, the statement said.
The company’s parent, the state-run Tata Chemical Industries Ltd., will remain in control of the chemical division.
Tata, which has about 500 chemical plants across the world, has made significant investments in India, including in fertilizers and other chemicals.
It also owns a stake in the Indian pharmaceutical and pharmaceutical technology company Theravance Therapeutics, which it acquired for $6.7 million in 2014.