Jindal Poly Films Ltd (JPFL) today said that it has signed an agreement with ExxonMobil Chemical to acquire its biaxially oriented polypropylene (BOPP) global film business.
The pact signed between JPFL and ExxonMobil Chemical, part of the oil and gas giant Exxon Corporation, is subject to approvals.
In a communique to the BSE, JPFL said that it "has entered into an agreement with ExxonMobil Chemical to purchase ExxonMobil's BOPP Global Film business. The agreement was signed on October 26, 2012. The transaction remains subject to necessary approval from regulatory authorities."
The agreement covers five BOPP production locations in the the US and Europe. The manufacturing sites are in Georgia and Oklahoma in the US and in Italy, Netherlands and Belgium in Europe, it added.
The agreement also includes a technology centre and sales office in Rochester, New York and an office in Luxembourg. Around 1,500 people work in those operations, the filing said.
JPFL, part of the B C Jindal Group, has interests in flexible packaging, photographic products, thermal power generation and steel products.
ExxonMobil Chemicals in a global player in the petrochemicals segment and manufactures products for the automobile, packaging, construction, industrial and personal care segment.
Shares of JPFL today fell by 4.67 per cent to settle at Rs 212.50 a piece from previous close at the BSE.