Plastic Omnium To Buy Solvay Stake In Fuel Tank JV
Belgian drugs, chemicals and plastics maker Solvay is selling its entire stake in auto fuel systems supplier Inergy Automotive Systems to joint venture partner Plastic Omnium, it said on Thursday.
The 50-50 joint venture is the world's top supplier of plastic fuel tank systems and had revenue of €900 million in 2009, Solvay said in a statement.
"We are convinced the new ownership will secure the best sustainable growth prospects for Inergy Automotive Systems," said Solvay Senior Executive Vice President Claude Thibaut de Maisieres in the statement.
Financial terms of the deal were not disclosed.
Solvay, one of the world's leading producers of polyvinyl chloride (PVC), is likely to follow in the footsteps of fellow drug-chemical hybrids by breaking up to raise cash for acquisitions in its chemicals portfolio, analysts say.
Inergy Automotive Systems, which employs 4,000 and has 24 factories, is expected to post revenue of €1.1 billion this year, Plastic Omnium said.
