From correspondents in Tamil Nadu, India, 09:00 PM IST

Abrasive manufacturer Carborundum Universal Ltd (Cumi) is acquiring 51 percent stake in the $16 million Foskor Zirconia Ltd, a South Africa-based zirconia and fumed silica maker.

The acquisition agreement has been signed by the companies Thursday in South Africa.

The deal size is estimated to be around Rs.150 million ($3.5 million) and will be routed through Cumi International, a wholly-owned subsidiary of Cumi.

This is Cumi's second major overseas acquisition in less than two years. In 2007, the Indian company acquired Volzhsky Abrasive Works of Russia for $37 million.

(Staff Writer, © IANS)