Solvay said it is "awaiting details" of a Nov. 13 decision by the Brazilian competition authority CADE not to allow the planned sale of its 70.59% majority stake in Solvay Indupa to petrochemicals giant Braskem.

Regardless of the outcome, the Belgian chemical producer said its strategic direction "remains unaffected." If the sale cannot be executed as planned, it will "examine alternative options" to sell the business.

Solvay Indupa is South America's second largest PVC producer and fourth-largest caustic soda producer. CADE said the two companies are the market's chief competitors. The deal as proposed would have made Braskem the top PVC producer in the Americas and Brazil's sole player.

The competition authority expressed dissatisfaction with the asset sale package Braskem had presented in exchange for permission to buy the Solvay subsidiary for $200 million.

Based at Buenos Aires, Solvay Indupa has production facilities for pipe grade PVC resin at Santo Andre, Brazil, and Bahia Blanca, Argentina. Altogether, the company can produce 540,000 t of PVC and 350,000 t of caustic soda annually.

CADE said Solvay and Braskem could file a new proposal, preferably including the sale of only one plant.

Commenting on the veto, Braskem said the decision weakens Brazil's petrochemical industry, which would have allowed it to capture efficiencies of scalet and thus compete more effectively in international markets.

This is especially important, it said, as the global PVC industry is dogged by lower profitability and a "clear global trend" toward consolidation of assets is in progress.

Solvay is in the process of divesting most of its PVC-related activities. Earlier this year, it brought its European chlorovinyls activities into a joint venture with Ineos. The group's PVC subsidiary Solvin, however, is holding onto its 50% stake in the RusVinyl joint venture with Russia's Sibur. News of the anti-trust decision coincided with Solvay's presentation of sales and earnings figures for the third quarter. The Belgian chemicals and plastics producer said recurring EBITDA (REBITDA) rose by nearly 10% on sales up 8% to €2.6 billion.

Solvay said the quarterly performance was driven by a 5% increase in volumes - as well as stable pricing. The REBITDA margin on net sales improved by 26 basis points to 17.7%.

CEO Jean-Pierre Clamadieu confirmed an earlier forecast of "high single-digit REBITDA for the full year, which it expects to achieve despite "uncertain and challenging" macro-economic conditions.