Solvay notifies EC of Rhodia friendly takeover bid

Belgian company Solvay has informed the European Commission of its friendly takeover bid on Rhodia in order to gain the competition authority’s approval of the transaction. The cash takeover offer was first announced to Rhodia shareholders in early April, with Solvay saying it would pay 31.60 euros per share for the French chemical manufacturer. Rhodia’s board of directors unanimously recommended acceptance of the offer.

“The launch of the Solvay offer gives Rhodia shareholders the opportunity to properly value their investment, while also contributing to the creation of a major chemical group. I am convinced that thanks to Rhodia shareholders’ confidence and support, we will be able to write a new page in the history of our two companies”, commented Jean-Pierre Clamadieu, Rhodia chairman and CEO.

The new group that will emerge out of the takeover is expected to generate annual sales of 12 billion euros and will account for 90 per cent of combined sales realised in businesses where it is one of the top three worldwide market leaders. The aim is to create a company with a broader businesses portfolio, one that is less exposed to economic cycles, geographically balanced and focused on emerging markets – which already account for 40 per cent of the new group’s sales.

 “The track record of both companies to date bears witness to the strong growth potential, based on their excellence and strong complementarities,” stated Solvay CEO Christian Jourquin. “These will enhance the development potential for the new group, which will be larger than those of Solvay and Rhodia on a standalone basis. This transaction will give the two companies the resources they require to pursue their track record of innovation and as such to meet their future industrial and technological challenges.”

The closing date for the offer will be published by the Autorité française des marchés financiers following receipt of approval from the European Commission. After setting the closing date by the Autorité française des marchés financiers, NYSE Euronext Paris will publish a release with the final calendar for the offer and for its settlement. This calendar will also be published in a joint Solvay-Rhodia press release.