Fairfax India Holdings Corp. (TSX:FIH.U) has become the majority shareholder of Privi Organics, an Indian chemical company, and is preparing to merge it with Adi Finechem, another Indian chemical manufacturing firm.
The subsidiary of Toronto-based Fairfax Financial Holdings (TSX:FFH) says it expects to own 49 per cent of the merged business once it completes the regulatory and court process.
It spent US$55 million to acquire 51 per cent of Privi's outstanding shares in a transaction that closed Friday. It paid US$19 million early this year to acquire 44.9 per cent of Adi Finechem.
The boards of Privi Organics and Adi Finechem have agreed to the proposed merger, which is expected to be complete in the first quarter of 2017.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.