Mumbai: Rain Calcining said on 23 July it has issued a notice to leading global marketer and distributor of petroleum coke, Oxbow Carbon & Minerals LLC for terminating its agreement with the US firm, as both companies now have substantial calcining operations in the United States.
Earlier on 18 September, 2004 Rain Calcining had entered into definitive agreements with Oxbow for the marketing of Calcined Petroleum Coke (CPC) and supply of Green Petroleum Coke (GPC).
Under the agreements, Oxbow was the marketing representative of Rain Calcining for the finished product, CPC, in all countries except India, and was to source, procure and deliver GPC, from worldwide refineries to the Rain Calcining plant at Visakhapatnam.
Oxbow recently acquired GLC Carbon USA, Inc. Rain Calcining through its wholly-owned subsidiary, Rain/CII Holding Inc., acquired CII Carbon LLC. Pursuant to these acquisitions, both Oxbow and Rain Calcining have substantial calcining operations in the US, Rain Calcining said in a filing to the BSE.
“If the agreements are continued, it may result in sharing pricing and other competitively sensitive information, which may be treated as violation of certain competitive laws due to the acquisitions by Oxbow and Rain Calcining,” the company said.
Rain Calcining through its letter dated 19 July, has served a notice to Oxbow for termination of its agreement the latter, with effect from 31 December, 2007.
Oxbow, leading marketer petroleum coke across the world sells 7 million tonnes of GPC and CPC a year.
Rain Calcining was trading at Rs 42.10, up 2.31% on BSE in early morning trade.