Solvay mulls sale of hdPE jvs to BP to finance Ausimont buy
18 December 2001 15:56 [Source: ICIS news]
LONDON (CNI)--Solvay chairman Alois Michielsen has hinted that the Belgian company might sell to partner BP its stakes in two high density polyethylene (hdPE) joint ventures to help finance its acquisition of Ausimont, according to well informed sources on Tuesday.
Solvay revealed last month that it was holding one-to-one talks with Italian energy group Montedison to buy its fluorinated and peroxides subsidiary Ausimont.
A spokesman for Solvay said today it was too early to comment on financing of the transaction because agreement with Montedison has not yet been reached. Montedison hopes to reach agreement on the deal by the end of the year.
BP said it has just set up the two joint ventures and the priority is to get them up and running. "We have no plans to dissolve them," said a spokesman.
He noted that, in common with most joint venture contracts, BP and Solvay "agreed options that each party may have to dissolve the joint venture in the future". Details of the options remain confidential, he added.
Solvay and BP announced the creation of the hdPE joint ventures - a 50:50 venture in Europe and a 51:49 venture in the US - only last month. The ventures generated combined pro-forma sales of approximately Euro2bn ($1.8bn) last year.
By: Anna Jagger
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