2022 Exhibitions
Solvay to split into two public companies by 2023
Belgian chemical company Solvay will separate into two independent public companies, one for its chemicals business and another for its specialty materials and solutions. The separation will be effected through a partial demerger of Solvay, with the specialty businesses spun off to SpecialtyCo.
One company, known for now as EssentialCo, will comprise Solvay's current chemicals and specialty chemicals business, including soda ash, peroxides and silica. These generated about EUR4.1 billion in net sales in 2021.
A second company, temporarily known as SpecialtyCo, will include its materials business including specialty polymers, composites and solutions. These generated around EUR6 billion in net sales in 2021.
Under the separation plan, Solvay's shareholders are expected to retain their current shares of stock, which will continue to be listed on Euronext Brussels and Euronext Paris.
Solvay reported record profits for 2021 in February, and had raised its dividend after reporting an 11th consecutive quarter of positive free cash flow generation.
Solvay’s shareholders would retain their current shares of Solvay stock and receive shares in the new company on a pro rata basis. Both companies are expected to be listed on Euronext Brussels and Euronext Paris.
The transaction is expected to close in the second half of 2023, subject to market and regulatory conditions.
No financial details were provided.
"Notwithstanding the challenges of the current global environment, we are confident that pursuing this plan would enable us to create compelling value for shareholders over the long-term," according to CEO Ilham Kadri.
"Our successful focus on cash, costs, and returns has strengthened the Materials and Solutions segments to be more self-sustaining and profitable. At the same time, the Chemicals segment has continued its strong track record of resilient cash generation," he added.
(PRA)
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