Davis Polk advised Solvay on the signing of a binding agreement with German chemical company BASF for the sale of its Polyamides business. Under the proposed terms of the agreement, the transaction is based on an enterprise value of €1.6 billion. The transaction covers Solvay’s upstream and downstream polyamides business in Europe, North America and Asia, as well as the downstream engineering plastics business in Latin America and involves around 2,400 Solvay employees. Solvay will retain its upstream intermediates and downstream textile polyamide business in Latin America.

The execution of definitive agreements is expected in the coming months following consultation with the relevant social bodies. Solvay and BASF aim to close the transaction in the third quarter of 2018, after customary regulatory approvals have been obtained and the formal consent of a joint venture partner has been received. The partner has already committed to grant its consent subject to the delivery of definitive documents with BASF.

Solvay is a multi-specialty chemical company headquartered in Brussels, Belgium, committed to developing chemistry that addresses key societal challenges. BASF is the largest chemical producer in the world.

The Davis Polk corporate team includes partner Jacques Naquet-Radiguet, counsel Juliette Loget and associates Andrew Rowe, Géraldine Fromage, Ferdinand Barbé and Abeba Negga. Counsel Jean-Mathieu Cot is providing antitrust and competition advice. All members of the Davis Polk team are based in the Paris office.

Copy link to share post