Tata Chemicals arm to buy 100% stake in Singapore-based Novabay for €25 million

Tata Chemicals Ltd on Friday (December 19) (TCL) announced that its wholly-owned subsidiary, Tata Chemicals International Pte Ltd (TCIPL) has signed a share purchase agreement (SPA) to acquire 100% equity shares of Novabay Pte Ltd (Novabay), a Singapore-based manufacturer of premium-grade sodium bicarbonate.

The completion of the acquisition is subject to the fulfilment of various conditions outlined in the SPA and is expected to be completed by March 2026.

Novabay, incorporated in November 2015, is

primarily engaged in the manufacture and sale of premium-grade sodium bicarbonate serving pharmaceutical, food, personal care, and other sectors across Europe, the Americas, Oceania, Asia, the Middle East, and ASEAN markets.

Also Read: Tata Group stock surges after 'double upgrade' from Morgan Stanley

It is a wholly-owned subsidiary of Novacarb, based in France. The company has a current production capacity of approximately 60,000 tonnes, with potential expansion to 100,000 tonne, and holds key cGMP, API, and related certifications. Novabay’s turnover for the last three calendar years was SGD 27.68 million (2022), SGD 25.93 million (2023), and SGD 29.49 million (2024).

The acquisition is structured as a cash transaction at an enterprise value of €25 million (equivalent to approximately SGD 37.8 million), subject to net debt, net working capital, and customary adjustments. Post-acquisition, Novabay will become a 100% subsidiary of TCIPL. The transaction is not a related party deal, and the promoter/promoter group of Tata Chemicals has no interest in Novabay.

Tata Chemicals stated that the acquisition aligns with the company’s strategic intent to strengthen its capabilities in premium-grade products and expand its presence in high-value, non-cyclical segments. The acquisition is expected to enhance TCL’s ability to serve premium customer requirements and accelerate long-term growth.

Also Read: Tata Chemicals approves ₹910-crore expansion in two plants

Commenting on the deal, Managing Director & CEO of TCL said, "Novabay's focus on premium-grade sodium bicarbonate aligns seamlessly with TCL’s strategy to expand its presence in high-value, non-cyclical product segments. This acquisition strengthens TCL’s capabilities in the specialty bicarb market and enhances our ability to serve premium customer requirements."

Novabay is among the largest premium sodium bicarbonate producers in the Asia-Pacific region (excluding China), supplying high-value grades for pharmaceutical, personal care, and food applications.

Shares of Tata Chemicals Ltd ended at ₹763, down by ₹14.10, or 1.88%, on the BSE today, December 19.

Also Read: Tata Chemicals Q4 | Firm slashes net loss to ₹56 crore, revenue flat; declares dividend of ₹11