Finance
Norway's Elkem Splits From China's Bluestar With $1 Billion Silicones Deal
Published by Global Banking & Finance Review®
Posted on February 13, 2026
1 min readLast updated: February 13, 2026
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Quick Summary
Elkem sells its Silicones division to Bluestar for $1 billion, simplifying its business and focusing on growth. Bluestar cancels its shares in Elkem.
Elkem to Sell Majority of Silicones Division to Bluestar for $1 Billion
Elkem's Strategic Business Move
OSLO, Feb 13 (Reuters) - Norway's Elkem said on Friday it has agreed to sell the majority of its Silicones division to its biggest owner, China's Bluestar, and that the Chinese company would cease to be a shareholder in the Norwegian group following the transaction.
Details of the Transaction
In return for taking over the Silicones unit, Bluestar will cancel all its 338.3 million shares in Elkem, corresponding to 52.9% of the group's capital, valued at 9.77 billion Norwegian crowns ($1.02 billion) at Wednesday's closing share price.
Future Plans for Elkem
"By divesting the majority of the Silicones division, we are simplifying our business, sharpening our strategic focus and allocating capital where we see strong long-term growth opportunities," Elkem CEO Helge Aasen said in a statement.
Following the transaction, Elkem plans to raise 1.5 billion crowns from other shareholders, it said.
($1 = 9.5639 Norwegian crowns)
(Reporting by Terje Solsvik, editing by Louise Rasmussen)
Key Takeaways
- •Elkem sells majority of Silicones division to Bluestar.
- •Bluestar cancels its 338.3 million shares in Elkem.
- •Transaction valued at $1.02 billion.
- •Elkem aims to raise 1.5 billion crowns post-transaction.
- •Strategic focus on long-term growth opportunities.
Frequently Asked Questions about Norway's Elkem splits from China's Bluestar with $1 billion Silicones deal
1What is a Silicones division?
A Silicones division refers to a segment of a company that specializes in the production and sale of silicone products, which are synthetic materials used in various applications including construction, automotive, and consumer goods.
2What is a strategic business move?
A strategic business move is a significant decision made by a company to enhance its competitive position, often involving mergers, acquisitions, or divestitures to optimize resources and focus on core operations.
3What is capital allocation?
Capital allocation is the process of distributing financial resources among various projects or investments to maximize returns and achieve the company's strategic objectives.
