Solvay and INEOS submit application to EC for PVC JV

INEOS and Solvay have submitted their application for competition clearance to the European Commission (EC) for their planned 50:50 joint venture for vinyls. Two companies had signed a Letter of Intent (LOI) in May 2013 to combine their European chlorvinyls activities in the proposed JV. The Commission will now consider the application and determine whether the JV can proceed as proposed. In addition to competition clearance from the EC and other relevant authorities, the proposed transaction is subject to the applicable information/ consultation procedures with employee representatives in the countries involved. These processes are currently under way.

ALSO READ: Solvay and Sadara JV begins construction of hydrogen peroxide plant

After completion of such procedures, the parties intend to enter into legally-binding agreements to form the JV subject to customary closing conditions. INEOS and Solvay will continue to run their PVC businesses separately until completion of the transaction, which is dependent on the above approvals and procedures.