Tata Chemicals Ltd announced on Saturday that its wholly-owned American subsidiary, Tata Chemicals North America (TCNA), has acquired customer service contracts for baking soda in North America. These contracts are valued at over 500,000 metric tons and cover deliveries from September 2026 to December 2028.
According to a statement from Tata Chemicals Ltd (TCL), TCNA entered into an Asset Sale and Assumption Agreement (ASA) with Searles Valley Minerals Inc (SVM) USA to obtain specific baking soda contracts and related commercial rights.
It was established that TCNA successfully participated in the bankruptcy proceedings of SVM USA under Chapter 11. This deal received approval from the United States Bankruptcy Court for the District of Delaware with a cash consideration of $21.16 million and remains subject to standard closing conditions under the ASA.
These contracts are expected to generate revenue exceeding $110 million over the entire term of the agreement. R Mukundan, CEO and Managing Director of TCL, noted that this acquisition is a strategic opportunity to strengthen the company's presence in the North American baking soda market and expand its customer base.
He added that the acquired contracts secure demand for over 500,000 metric tons and are projected to bring in more than $110 million in revenue by December 2028. Mukundan emphasized that this transaction enhances the portfolio of long-term customer relationships, increases demand transparency, and confirms the company's commitment to providing reliable supply and high-quality service. He also stated that it aligns with the company's strategy to achieve profitable growth and create sustainable value for all stakeholders.