By Patrick Raleigh ERJ On-line news editor/
Strasbourg, France- Aventis is to divest its 49-percent stake in Wacker-Chemie GmbH to meet European Commission conditions for its formation back in 1999-through the merger of Rhône-Poulenc and Hoechst.
The divestment, to take place “within a confidential timeframe of several years,†replaces an earlier EC requirement for Aventis to sell its 15.3-percent stake in Rhodia. This was to prevent competition issues in the markets for silicone sealant, silicone elastomer and polymer powder.
The new deal gives Aventis “added flexibility to secure its own financial interest†by allowing financially-stricken Rhodia to restructure its operations, according to a 2 Feb Aventis statement.
“The sale of Wacker-Chemie fulfils the same purpose [as the sale of the Rhodia stake] since the competition issues resided in the overlaps between the two firms,†said a 30 Jan EC statement, clearing the new arrangement.
In a related move, the US Federal Trade Commission has extended its deadline for Aventis' disposal of the Rhodia stake by one year, to 22 April, 2005, said Aventis.
