Wanhua Raises Stake in Borsodchem

China's Wanhua Industrial Group has raised its stake in Hungarian chemical company Borsodchem from 38% to 96% in a $1.66bn deal.

The acquisition is expected to give Wanhua access to the European chemicals market and make it a leading producer of isocyanates – the raw materials used to make foams for the automotive, construction and furniture industries.

In June 2010, Wanhua acquired a 38% stake in BorsodChem, with a call option to acquire most of Borsodchem's remaining shares from the previous majority shareholders Permira / Vienna Capital Partners.

The remaining 4% of BorsodChem's shares are owned by the company's creditors.