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

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

Single catalyst for oxidation and reduction of water

15 August 2012 Research

news image

A cobalt-based catalyst designed to produce hydrogen by electrosplitting water can be reversibly switched to produce oxygen.

Most Commented

Lithium–sulfur batteries ready to go the distance

3 December 2013 Research

news image

Innovative electrodes set to put electric cars in the fast lane with a new design that holds double the energy of ordinary li...

Graphene made in a kitchen blender

22 April 2014 Research

news image

High quality flakes of two-dimensional material exfoliated from graphite points way to bulk production