Solvay concludes sale of minority stake in non-core salt business to K+S
Solvay has finalized the sale of its 38% stake in ESCO (European Salt Company GmbH & Co. KG) to K+S Aktiengesellschaft, which was initially announced in February 2004. K+S already hold the other 62% of the ESCO joint venture. The German and Belgian Competition authorities have granted their permission to the transaction; the approval by the French authorities is expected to be given soon.
It has been agreed by the parties that the purchase price will be kept confidential.
The ESCO joint venture was initially set up in early 2002 to encompass the production and distribution activities of crystalline salt which Solvay and K+S intended for third parties. For 2003, Solvay's share in ESCO's sales and REBIT was respectively EUR 122 million and EUR 13 million.
Selling salt to third parties on the 'merchant' market is not one of Solvay's core activities. It was an accessory to Solvay's captive salt production, which accounted for approximately 85% of its total salt output and is used in the Group's soda ash and electrolysis processes. Solvay's captive salt production is unaffected by the present transaction.
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