Solvay to sell stake in Indupa to Brazilian firm

Belgian chemicals firm Solvay has signed a definitive agreement with Brazilian chemical group Unipar Carbocloro to sell its 70.59% stake in Solvay Indupa, its unit based in Brazil and Argentina. The transaction is based on a total enterprise value of US$202 million, subject to adjustments and in particular the sale will be subject to antitrust approval.

In 2013, Solvay had tried to sell Indupa to another Brazilian chemicals firm Braskem http://www.plasticsandrubberasia.com/dec2013/company9.html But the Brazilian antitrust authority blocked the sale on account that the two companies were competitors in the PVC market in South America. http://www.plasticsandrubberasia.com/nov2014/company4.html

“Solvay’s divestment of Indupa follows our announced early exit of our European PVC joint venture as Solvay is transforming into a speciality chemicals group,” said Vincent De Cuyper, member of Solvay’s Executive Committee.

“In acquiring Solvay Indupa, Unipar will strengthen its strategic position in the caustic soda and chlorine value chain extending its chemical footprint in PVC and allowing for the further development of Indupa,” he added.

Created in 1948, PVC and caustic soda producer Solvay Indupa has 956 employees and two production sites in Brazil and Argentina, where it is listed on the Buenos Aires Stock Exchange. Solvay had already classified Solvay Indupa as an “Asset held for sale”.

Solvay recently reported a 2% rise in earnings for the first quarter, which is better than expected. The company maintained its 2016 outlook for growth in the high single digits, against “the smooth and swift integration of the former Cytec teams and businesses”. Solvay bought US composites firm Cytec Industries for US$5.5 billion last year. http://www.plasticsandrubberasia.com/july2015/company11.html