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ColourChem, Clariant merger not now
ENS ECONOMIC BUREAU
CHENNAI, February 5: With Hoechst selling off its specialty chemicals business to Clariant AG worldwide, there were expectations that Clariant's subsidiary Clariant India and Colour Chem (previously Hoechst's subsidiary, now Clariant AG holds 50.1% in Colour Chem) would merge in India. However, these expectations maybe ruled out, at least till the year 2002, P V Subramanian, Managing Director of Vanavil Dyes and Chemicals Ltd, told newsmen here on Wednesday.Vanavil is a subsidiary of Colour Chem and therefore Clariant AG has got a stake in Vanavil through Colour Chem. Clariant AG has got textile dyestuff business worldwide and Clariant India can still manufacture it in the country. However Colour Chem had sold its dyestuff business to Dyestar (Bayer's subsidiary) in order to bring about more synergy of product lines. Colour Chem also allowed Dyestar to use its existing manufacturing capacities in the dyestuff business and is collecting a toll fee in return. There is an agreement between Dyestar andColour Chem that prevents the latter from competing with the former till the year 2002 in the dyestuff business. Unless Clariant AG gives up its dyestuff business globally there is no possibility of the Colour Chem-Clariant India merger because of the agreement with Dyestar, said Subramaniam. As far as Vanavil's future was concerned, the Clariant AG takeover had given it a fillip in operations. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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