Solvay launches friendly bid to buy Rhodia

ERJ staff report (DS)

Brussels -- Solvay has launched a friendly bid to acquire 100 percent of the share capital of Rhodia. The euro 31.6 per share offer is unanimously recommended by Rhodia's board of directors and is expected to go through by August 2011, subject to regulatory approvals. It will create a merged company with sales of EUR 12 billion and EBITDA of EUR 1.9 billion.

The offer price represents a premium of 50 percent compared to the latest closing share price of Rhodia and a premium of 44 percent compared to Rhodia's average closing share price over the last three months.

To facilitate a smooth and rapid integration of the two groups, Jean-Pierre Clamadieu, Chairman and CEO of Rhodia, will join Solvay's Executive Committee in the role of Deputy CEO once the Offer is closed. Jean-Pierre Clamadieu is also intended to succeed Solvay's current CEO Christian Jourquin upon his retirement. In this context Jean-Pierre Clamadieu will be proposed for appointment to the board of directors of Solvay at the AGM in May 2012. In addition, Gilles Auffret, COO of Rhodia, will be appointed CEO of Rhodia and member of the Executive Committee of Solvay.

The creation of a new group will accelerate the shared ambition to create a large global chemical company committed to sustainable development.

Future geographic expansion will be driven by a significant presence in the emerging markets, which already generate 40 percent of sales of the combined group. The complementary nature of the industrial activities of Rhodia and Solvay should provide the combined group with a balanced presence in its different market segments: specialty chemicals for consumer goods, construction, automotive, energy, water, environment, and electronics.

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Press release from Solvay