Joint Venture Solvay and Ineos Sell Plants to Enable Joint Venture
To comply with the regulations of the EU merger control review for their Inovyn joint venture, Solvay and Ineos are selling PVC, EDC and VCM plants at five locations to ICIG.
Brussels/Belgium — Solvay and Ineso have reached an agreement with International Chemical Investors Group (ICIG) for them to acquire the assets being divested by Ineos. This agreement follows extensive discussions with the European Commission in the context of the merger control review of Inovyn, a 50/50 joint venture between Solvay and Ineos. The sale of the remedy buisness is a key step towards the completion of the Inovyn project.
It is anticipated that the formation of Inovyn will take place in the second quarter of 2015, upon receipt of all required regulatory approvals and completion of consultation with the relevant Ineos employees.
The assets being divested (the remedy business) consist of:
- the chlorine plants and EDC/ VCM plants at Tessenderlo, Belgium (excluding the chlorotoluenes business that will remain with Ineos)
- 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.
In addition, the membrane chlorine plant at Runcorn is to be placed in a 50/50 Joint Venture between Inovyn and ICIG. The divestment will also include a portion of the potassium hydroxide business at Tessenderlo, with ICIG supplying Inovyn under a toll manufacturing arrangement for the proportion of the potassium hydroxide business that Inovyn will retain.
ICIG is a privately held industrial company (headquartered in Luxembourg and Germany) that specializes in chemicals and pharmaceuticals, with 23 manufacturing sites across Europe and the United States.