PHOENIX (Nov. 16)—Phelps Dodge Corp. has agreed to sell its Columbian Chemicals Co. carbon black subsidiary to a company owned jointly by South Korea's DC Chemical Co. Ltd. and One Equity Partners, a private equity affiliate of JPMorgan Chase & Co., for about $600 million.
The transaction is subject to customary closing conditions, including regulatory approvals, Phelps Dodge said. The Phoenix-based engineering and minerals firm expects to report an after-tax loss on the sale of about $60 million.
Marietta, Ga.-based Columbian is considered the third-largest carbon black maker in the world, after Cabot Corp. and Degussa Engineered Carbons L.P. Columbian has 12 plants around the world with annual capacity of about 1.1 million tons.
DC Chemical has two carbon black operations in South Korea, each with a capacity of 100,000 metric tons a year. Products are sold under the trade name Dash Black.
In a filing with the Korean stock exchange, DC said it is setting up a company called Columbian Chemicals Holdings L.L.C. to acquire all the shares in Columbian (100 percent) owned by Phelps Dodge. The equity will be split 2:1, with DC Chemical owning the two-thirds controlling share.