EU clears Solvay buy Cytec, subject conditions

EU clears Solvay buy of Cytec, subject to conditions

11:34 AM, 3rd December 2015
EU clears Solvay buy of Cytec, subject to conditions

BRUSSELS, BELGIUM: The European Commission said that it has approved Belgian chemical group Solvay to acquire Cytec Industries for $5.5 billion, but it was conditional on Solvay divesting activities in phosphor-based solvent extraction, used in the mining and refining sector to separate cobalt from nickel.

“The companies’ activities are largely complementary and they are generally not active at the same level of the supply chain. However, both parties are present in the business for specialty chemicals for the mining and refining industry,” the commission said in a statement.

Customers in the refining industry worldwide would have little alternative but to buy Solvay’s Ionquest 290 and Cytec’s Cyanex 272 products as existing competitors were small and their products’ reputations are not as strong.

The transaction could ultimately lead to price rises and would not longer raise competition concerns, the commission concluded.

Solvay has offered to divest its Ionquest brand, including transfer of technology, support and customer contacts.

Solvay’s acquisition of Cytec will give it a bigger presence in the lightweight materials business where demand from the aerospace industry is booming.

© Reuters News

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