Belgium-headquartered chemical company Solvay SA has announced that it has signed an agreement with Brazilian chemical group Unipar Carbocloro to sell its 70.59 percent stake in Solvay Indupa.
Solvay states that the transaction is based on a total enterprise value of $202.2 million and completion is subject to the customary closing conditions, including antitrust approval.
This is the second attempt by Solvay to sell the controlling share of Solvay Indupa, the first being in November 2014 to Braskem, but Brazil's anti-trust regulatory body, the Administrative Council for Economic Defense (CADE), vetoed the deal saying the two companies were the chief competitors in South America's PVC market.
Vincent De Cuyper, a member of Solvay's Executive Committee said: "Solvay's divestment of Indupa follows our announced early exit of our European PVC joint venture as Solvay is transforming into a specialty chemicals group. 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."
Solvay Indupa currently has 956 employees and two production sites in Brazil and Argentina, where it is listed on the Buenos Aires Stock Exchange.
Solvay saw sales of 12.4 billion euros ($14.3 billion) in 2015, it has 145 sites worldwide and employs around 30,900 people.