Phelps Dodge confirms plan to sell Columbian Chemical to Korean company

Phoenix, Arizona -- Phelps Dodge Corp.has confirmed its intention to sell its Columbian Chemicals Co. to a company owned jointly by One Equity Partners, a private equity affiliate of JPMorgan Chase & Co., and South Korean-based DC Chemical Co. Ltd. Phelps Dodge said the transaction is subject to customary closing conditions, including regulatory approvals.

Based in Marietta, Georgia, Columbian Chemicals Co. is the world's third largest producer of carbon black. Columbian owns and operates 12 carbon-black manufacturing facilities in Brazil, Canada, England, Germany, Hungary, Italy, Korea, Spain and the United States.

Under the terms of the agreement, Phelps Dodge expects to receive cash proceeds of approximately $600 million, including approximately $115 million of Columbian's foreign-held cash to be distributed to Phelps Dodge. The transaction is expected to result in an approximate $60 million special, net after-tax loss.