Solvay finalizes sale of interest in BP Solvay Polyethylene joint ventures to BP
Solvay SA announced that it has finalized the sale of its interest in the BP Solvay polyethylene joint ventures to BP, following clearance by the European Commission and by the US Federal Trade Commission in December 2004. Solvay held 50% of BP Solvay Polyethylene Europe and 51% of BP Solvay Polyethylene North America. BP is now the full owner of the European and American joint ventures. The BP Solvay Polyethylene subsidiaries were created in August 2001 to combine both groups' high density polyethylene (HDPE) activities, in parallel with two other transactions in which Solvay sold its polypropylene activities to BP and acquired BP's specialty polymers business. Later in 2001, to further its leadership in specialty polymers, Solvay acquired Ausimont, now called Solvay Solexis. To help the financing of this latter acquisition, Solvay monetized the proceeds of its option to sell its interest in the polyethylene joint ventures to BP. To that effect, a fully consolidated subsidiary of Solvay (Solvay Finance Jersey) issued EUR 800 million of preferred shares, which were subscribed by several banks. These preferred shares will be reimbursed with the proceeds of the sale. The finalization of the sale of Solvay's Polyethylene joint venture interests concludes the series of related transactions entered into between Solvay and BP in 2001 and brings Solvay's proceeds to approximately 1 billion euros, part of which will be utilized to reimburse the preferred shares of Solvay Finance Jersey.
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