Elkem ASA is taking a decisive step to reshape its future, striking a deal to sell the majority of its Silicones division to its largest shareholder, Bluestar — a move that will hand full control of the listed company to minority investors and transform Elkem into a pure-play metals and materials powerhouse.
The transaction will be settled by redeeming all 338,338,536 shares held by Bluestar, representing 52.9% of Elkem. There will be no cash exchanged. Once the deal closes, expected by May 2026, Bluestar will cease to be a shareholder.
The agreement follows a year-long strategic review and exclusive sales process launched in early 2025. Now, Elkem’s board says the outcome is clear.
“This transaction is the result of a thorough strategic review initiated in early 2025 and reflects the Board’s clear ambition to create the strongest possible foundation for long-term value creation. We are confident that the agreement with Bluestar delivers a favourable outcome for Elkem’s employees, shareholders and other stakeholders, while positioning both Elkem’s metals and materials divisions, and the Silicones division for future growth,” said Elkem Deputy Chair of the Board of Directors Dag J Opedal.
The deal transfers the bulk of Elkem’s global Silicones assets, operations and employees to Bluestar, a former owner of parts of the business with deep knowledge of the division and ambitions to expand along the silicones value chain.
Elkem will retain selected silicones assets in China, France and India, while exploring strategic alternatives for parts of the remaining portfolio. A five-year supply agreement tied to its French upstream operations is designed to ensure economically viable and earnings-neutral operations post-transaction.
Chief Executive Helge Aasen framed the move as a return to Elkem’s industrial roots.
“Since its founding more than 120 years ago, Elkem has consistently optimised its portfolio to adapt to changing market dynamics and capitalise on emerging growth opportunities.
"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. We are confident that the agreement also delivers the most favourable outcome for the Silicones division positioning the business for accelerated specialisation and growth,” said Elkem CEO Helge Aasen.
After completion, Elkem will consist of its Silicon Products and Carbon Solutions divisions, alongside Other operations — positioning the group as a streamlined supplier of critical materials to green and digital transition markets.
Immediately following the deal, Elkem’s net interest-bearing debt is expected to stand at approximately NOK 9.8 billion, excluding the planned capital raise. The company says lower capital intensity and improved cash generation will enhance deleveraging capacity and open the door for both organic growth and targeted acquisitions.
“Following the transaction, Elkem will be a focused metals and materials producer. This allows us to pursue tailored strategies aligned with our divisions’ unique strengths and respective market dynamics. We will remain an international industrial major with production plants across five continents, underscoring our position as a leading producer with an integrated value chain.
"We will continue to prioritise innovation through our R&D centres worldwide, to meet the demands stemming from heightened focus on supply chain security for critical materials. Our robust financial profile will position us well to pursue selective growth and consolidation opportunities within our core segments,” said Elkem CEO Helge Aasen.
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