Rajesh Exports acquires world’s largest gold refinery firm Valcambi

The Dollar Business Bureau

Valcambi CEO Michael Mesaric, Rajesh Exports Chairman Rajesh Mehta, Rajesh Exports MD Prashant Mehta and Valcambi Global Head of Sales Giofre Ursula giving details of the deal at a Mumbai hotel

  Bengaluru-headquartered gold and diamond jewellery maker Rajesh Exports (BSE Code: 531500 / NSE Code: RAJESHEXPO) on Monday announced that it has acquired 100% stake in Swiss precious metals refining company Valcambi in an all cash deal. Following the acquisition, Rajesh Exports Limited (REL) has become an integrated player covering precious metal refining and gold jewellery making. Giving details about the deal at a press conference in Mumbai, REL Chairman Rajesh Mehta said, “The coming together of REL and Valcambi would expand the global gold business and would prove very productive for the future global plans of REL group. We will seamlessly integrate Valcambi into REL group and would continue with the professional and globally acclaimed management of Valcambi. The acquisition is also of national importance for India, as India is the largest consumer of gold in the world, it would be a step in the right direction by an Indian company to own a world class asset like Valcambi. On a theoretical basis Valcambi is capable of supplying the entire gold requirement of India.” Founded in 1961, Valcambi has processed and sold an average 945 tons of gold and 325 tons of silver per annum during the last three financial years which is more than the annual consumption of gold in India. Valcambi is the largest gold refinery in the world, with a capacity to refine 1,600 tons of gold or altogether 2,000 tons of precious metals per annum. Before the acquisition, Valcambi was owned by Newmont Mining Corporation and a group of Swiss investors. New York stock exchange-listed Newmont is one of the world’s biggest gold and copper mining company. REL through it’s wholly owned subsidiary in Singapore REL Singapore Pte Ltd (RELS) has fully acquired European Gold Refineries (EGR), the 100% holding company of Valcambi in an all cash deal with a total investment of $400 million. RELS has been set up for global acquisitions and for procurement of raw gold from the mines. RELS has set up a subsidiary in Switzerland named Global Gold Refineries Ltd (GGR). GGR has acquired 100% stakes of EGR in an all cash deal, which in turn holds 100% shares of Valcambi. Valcambi owns several trademarks which are registered in 51 countries across the world. Valcambi CEO Michael Mesaric on this occasion said, “The coming together of REL and Valcambi would ensure that Valcambi improves on it’s global share of gold business, by opening up new markets in India, Middle East and China.” REL exports its products to various countries around the world and it also retails its products in India through its own retail outlets under the brand name of SHUBH Jewellers.    

July 28, 2015 | 9:07 pm IST.