BRUSSELS, June 26 Belgian chemicals company
Solvay said on Thursday it had completed a PVC joint
venture with privately held INEOS and that it would exit the
business in three years, earlier than initially planned.
Under the original terms of the deal agreed in May 2013,
Solvay was to have sold its stake in the venture within four to
The venture, set to be the world's second-biggest PVC
producer behind Japan's Shin-Etsu, secured approval
from the European Commission last month after the parties agreed
to sell some plants and assets to ease competition concerns.
Solvay said in a statement it would now receive an upfront
payment of 175 million euros ($239 million), compared with an
initially envisaged 250 million euros.
The Belgian company said it would exit the venture, set to
be called INOVYN, after three years and receive an additional
amount based on the average core profit over those three years.
Solvay said the targeted amount was 250 million euros, with a
minimum payment of 75 million euros.
Solvay's divestment fits with its plan to shift from
lower-margin bulk plastics activities to speciality polymers and
chemicals such as for the oil and gas sector and consumer
chemicals for skin and hair care products.
Solvay said the transaction would result in an accounting
impairment of 420 million euros, which would impact Solvay's net
income in the second quarter.
INOVYN will be headquartered in London and have 2013 pro
forma sales of more than 3 billion euros, with 14 sites in eight
($1 = 0.7335 Euros)
(Reporting by Philip Blenkinsop; Editing by Mark Potter)