26 June 2014
Details
have today announced
the signing of a definitive Joint Venture agreement
covering their European chlorvinyls activities.
The Joint Venture - to be known as
INOVYN -
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.
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.
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.
Until formation of the Joint Venture,
which is expected during Q4 2014,
INEOS and Solvay will continue to
run their businesses separately.
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