Solvay and BASF have formed an agreement with Domo Chemicals, whereby Domo will acquire Solvay’s Polyamide assets that needed to be divested to a third party as part of the European Commission’s merger control clearance process.
According to a Solvay press release, the agreement is a key step toward completing the divestment of the company’s remaining polyamides business to BASF.
Domo is a fully integrated nylon 6 specialist, providing specialized engineering materials solutions to customers in the automotive, electrical, construction, industrial applications and consumer goods industries.
According to press release, the assets acquired by Domo involve Solvay’s Performance Polyamides facilities at Belle-Etoile and Valence, as well as a stake in a newly created joint venture between BASF and Domo in Chalampé (France). They also involve sites in Gorzow (Poland), Blanes (Spain) and commercial activities in Germany and Italy.
BASF will acquire all the activities that are not included in the remedy package and that are part of the original agreement between Solvay and BASF signed at the end of 2017.
Solvay, BASF and Domo will continue to run their businesses separately until completion of the transaction, which remains subject to relevant merger control clearances, required regulatory approvals and completion of employee representatives procedures.
The entire transaction, which is based on a purchase price of €1.6 billion on a debt free and cash free basis, is expected to be completed by the end of 2019.
