Ineos and Solvay sign definitive joint venture agreement
INEOS and Solvay have announced the signing of a definitive Joint Venture agreement covering their European chlorvinyls activities. The Joint Venture - to be known as INOVYNTM - was given clearance by the European Commission in May 2014.
Formation of the Joint Venture is subject to implementation of an agreed remedy package consisting of the divestment of INEOS-owned assets in Tessenderlo (Belgium), Mazingarbe (France), Beek (The Netherlands), Wilhelmshaven (Germany) and Runcorn (UK).
The terms of the Joint Venture have been simplified since the deal was announced in May 2013. Solvay will now receive an up-front payment of €175 million at closing and in addition to transferring their chlorvinyls assets into the Joint Venture, will also transfer €250m of liabilities principally in respect of pensions and environmental liabilities. Solvay will exit INOVYNTM after three years, leaving INEOS in sole control, when Solvay will receive additional cash proceeds targeted at €250 million (with a minimum payment of €75 million). This amount will be adjusted depending on the financial performance of INOVYNTM during the three year Joint Venture period.
To be headquartered in London, INOVYNTM will have proforma 2013 sales of more than €3 billion, with assets across 14 sites in Belgium, France, Germany, Italy, Norway, Spain, Sweden and the UK.
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