Published by Global Banking & Finance Review®
Posted on February 13, 2026
1 min readLast updated: February 13, 2026
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Elkem sells its Silicones division to Bluestar for $1 billion, simplifying its business and focusing on growth. Bluestar cancels its shares in Elkem.
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.
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.
"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)
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.
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.
Capital allocation is the process of distributing financial resources among various projects or investments to maximize returns and achieve the company's strategic objectives.
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