INEOS signed a Letter of Intent (LOI) to combine its European chlorvinyls activities in a proposed 50-50 joint venture on May 7th. The combination of the two businesses would form a polyvinyl chloride (PVC) producer ranking among the top three worldwide. It would build on the strengths of both our companies’ industrial assets, the skills to enhance competitiveness.
“This agreement will result in the creation of a truly competitive and sustainable business that will provide significant benefit to customers such as reliable access to PVC,” said Jim Ratcliffe, “The newly combined business, which will be of world scale, will be able to better respond to rapidly changing European markets and to match increasing competition from global producers.”
The agreement provides the mechanism under which INEOS would acquire Solvay’s 50% interest in the joint venture between four and six years from its formation, after which INEOS would be the sole owner of the business.