EU Gives Green Light Ineos–Solvay Chlorvinyls Joint–Venture Finally Under Way
A union of giants in polymers takes shape: The European Commission has cleared the way for proposed joint-venture of Solvay's and Ineos' chlorvinyl business. The new JV-business could easily be the world's third largest chorvinyl player, industry insiders estimate.
Brussels/Belgium –To gain the acceptance of the EU and antitrust authorities, the companies agreed to sell of several assets of Ineos as a so called 'remedy package'. This includes:
- the membrane chlorine plant and EDC/ VCM plants at Tessenderlo, Belgium
- the PVC plant at Mazingarbe, France
- the PVC plant at Beek, the Netherlands
- the PVC and VCM plants at Wilhelmshaven, Germany
- the EDC plants at Runcorn, UK
as well as the chlorine plant at Runcorn, which is to be placed in a Joint Venture between the Ineos/ Solvay Joint Venture and the new owner of the aforementioned plants. Until the completion of the joint-venture in late 2014, both companies will continue to run their businesses separately.
Not Forever: Solvay to Exit JV After Six Years at the Latest
Already in 2013, Solvay and Ineos discussed the potentials of joining their chlorvinyl-businesses in a 50-50 JV company. As this deal would create a global chlorvinyls heavyweight, including the largest S-PVC production sites in Western Europe, the European Comission announced concerns. After an in-depth examination, Ineos and Solvay offered the remedy package deal as a price for the comission's approval.
The proposed joint venture is, nevertheless, not meant to last forever: After six years at the latest, Solvay will exit the business, leaving all joint operations to be taken over by Ineos.