Solvay to Exit Ineos Chlorvinyls Early

17.03.2016 -

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.