OM Group to exit cobalt business


US speciality chemicals firm OM Group has signed a deal to sell its cobalt business for up to $435 million (£280 million) to a joint venture between Freeport-McMoRan Copper & Gold, Lundin Mining and Gécamines. The deal includes downstream activities, in particular cobalt refining in Kokkola, Finland.

OM Group will receive $325 million up front and a further $110 million if and when commercial targets are achieved.

After the sale, the company expects to have $500 million in cash, which it will use to clear ‘a substantial portion’ of its debt. It will also look to strengthen its position in growth markets including the automotive systems, electronic devices, aerospace, general industrial and renewable energy markets.

‘The divestiture of our cobalt business is the final step in exiting our legacy commodity businesses and is consistent with our strategy to move up the value chain into technology-based businesses with attractive growth prospects and more predictable earnings profiles,’ said Joe Scaminace, chairman and chief executive of OM Group.


Related Content

Tough tungsten alloy produces purer nanotubes

27 June 2014 Research

news image

Heat stable catalyst grows carbon nanotubes with 90% uniform chirality

Alfred Werner: the well-coordinated chemist

26 February 2013 Premium contentFeature

news image

Werner’s careful experiments led to the discovery of what came to be known as coordination bonds

Most Read

First pictures of hydrogen bonds unveiled

26 September 2013 Research

news image

Observation of intermolecular interactions in quinolines could help to settle the nature of this kind of bonding

Flowing rivers of mercury

7 January 2015 Feature

news image

Philip Ball investigates claims that the burial chamber of China’s first emperor contains rivers of shimmering mercury

Most Commented

SiRNA treatment cures Ebola in monkeys

23 April 2015 Research

news image

Researchers perform the first successful trial for a drug against the current strain of Ebola

Relativity behind mercury's liquidity

21 June 2013 Research

news image

First evidence that relativistic effects are indeed responsible for mercury's low melting point