Solvay and Ineos divest remedy business to ICIG to complete Inovyn project

In order to materialise their chlorvinyls joint venture, Inovyn, Solvay and Ineos have reached an agreement with International Chemical Investors Group (ICIG) to acquire the assets being divested by Ineos. This agreement, which follows extensive discussions with the European Commission in the context of the merger control review of Inovyn, is a key step towards the completion of the Inovyn project.
 
ICIG is a privately held industrial company (headquartered in Luxembourg and Germany) that specialises in chemicals and pharmaceuticals, with 23 manufacturing sites across Europe and the United States.
 
The assets being divested (the remedy business) include the chlorine plants and EDC/ VCM plants at Tessenderlo, Belgium (excluding the chlorotoluenes business that will remain with Ineos); PVC plants at Mazingarbe (France) & Beek (the Netherlands); PVC & VCM plants at Wilhelmshaven (Germany); and 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.
 
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.