Brussels-based plastics and chemicals conglomerate Solvay S.A. and Paris-based Rhodia — a chemical
conglomerate comprising 11 business units including Polyamide & Intermediates, Fibras, and
Engineering Plastics based on polyamide 6,6, among other businesses — have signed an agreement for
Solvay to acquire 100 percent of Rhodia at 31.60 euros per share ex-dividend of 0.5 euros, a cash
offer valuing Rhodia’s equity at 3.4 billion euros and the enterprise at 6.6 billion euros. The
transaction, which is subject to regulatory approvals in the European Union and in the United
States, is expected to create a new group with complementary businesses and synergies, and with
annual sales of 12 billion euros, and earnings before interest, taxes, depreciation and
amortization minus non-recurring elements totaling 1.9 billion euros.
According to the joint announcement made by the two companies, “the creation of a new group
will accelerate the shared ambition to create a large global chemical company committed to
sustainable development. The new group will capitalize on its large geographic footprint, the
quality and balance of its portfolio, its industrial excellence and the solidity of its financial
base to fully capture new growth opportunities, especially in high-growth markets.”
May/June 2011
