Solvay to Exit Ineos Chlorvinyls Early
Solvay has announced it will quit the Inovyn chlorvinyls joint venture with Ineos in the second half of 2015, more than two years earlier than anticipated, giving its Swiss-based partner 100% control.
The Belgian chemicals group originally planned to exit the 50:50 partnership in July 2018, three years after forming Inovyn with Ineos in July 2015 after a protracted EU antitrust investigation.
Solvay will receive a final performance-based exit payment of €335 million, which is higher than the maximum of €280 million targeted when final terms of the deal were agreed last July. At that time, the group received €150 million in exchange for its European chlorvinyls business. It also transferred pension and environmental liabilities with an estimated value of €260 million.
Jean-Pierre Clamadieu, Solvay’s CEO, said the early exit was due to a fast and efficient integration that had turned Inovyn into a “sound and sustainable chlorvinyls player.” This, he said, “allows us to bring forward Solvay’s exit and to further focus on its portfolio transformation, while achieving a first step in de-leveraging the balance sheet.”
Ineos chairman Jim Ratcliffe added: “Chlorvinyls businesses are core to large petrochemicals companies such as ours and through this planned acquisition Inovyn will have an owner with a long-term vision that provides stability for its business and employees.”
Closure of the transaction is subject to finalizing legal agreements and the usual regulatory approvals.