Huntsman operates a 100 per cent subsidiary in the country -- Huntsman Advanced Materials Solutions -- which directly competes with Fevicol, as it manufactures and sells adhesives, sealants and other products under brands such as Araldite, Araldite Karpenter and Araseal in the country.

 “We’ve entered into a definitive agreement to buy the consumer and bazaar business of the US-based Huntsman Group’s India arm – Huntsman Advanced Materials Solutions — for Rs 2,100 crore. The cash consideration excludes customary working capital and other adjustments, subject to certain preconditions being met prior to the closing of the transaction. The agreement was signed last night (Wednesday),” Pidilite Industries said in a statement.

 The deal also includes the company’s Indian subcontinent business, apart from a trademark licence for the Middle East, Africa and ASEAN countries.

 Huntsman had a revenue of around Rs 400 crore in 2019, from its operations here. The Huntsman Group is a leading global producer of differentiated organic chemical products. Under the deal, Huntsman will get around 90 pc of the cash consideration at closing and balance around 10 per cent within 18 months if the business achieves sales revenue in-line with 2019. The transaction is expected to close by next week.

 “With this acquisition, Araldite will add to the already very strong portfolio of our adhesives and sealants and will complement our retail portfolio,” said Bharat Puri, MD, Pidilite.