Ineos Group AG and Solvay SA, Europe’s two largest manufacturers of PVC, have received European Union approval for a 4.3 billion euro ($5.9 billion) joint venture after agreeing to dispose of plants.
The joint venture, announced last year, will enable Ineos and Solvay to cut costs across a range of areas, offsetting material price rises and soaring energy bills. Overcapacity is also dogging PVC, pushing down process.
“PVC is an important raw material used in the construction sector and in many other industries,” said E.U. Competition Commissioner Joaquin Almunia. “The proposed commitments will ensure that the transaction will not result in higher prices to the detriment of businesses and consumers in Europe.”
Ineos will look for a buyer for suspension polyvinyl chloride (S-PVC) sites, providing a purchaser with a “self-standing S-PVC business capable of competing with the new joint venture,” the European Commission said in a statement.