Solvay to sell some businesses to gain EC approval on Ausimont deal

BRUSSELS, Belgium (April 16)— Solvay S.A. has agreed to divest some coatings and additives assets to assuage European Commission concerns about its proposed acquisition of Italian fluoropolymer producer Ausimont S.p.A. Solvay and chemicals producer Montedison S.p.A. agreed earlier this year to the $1.2 billion deal and have been awaiting EC approval. The deal would make Solvay the world's second largest producer of fluoropolymers, after DuPont Co. To meet EC requirements, Solvay will sell a non-coatings polyvinylidene fluoride plant in Decatur, Ala., as well as Ausimont's stake in a detergent additives joint venture with Degussa A.G. The acquisition will mark Solvay's entry into the fluoroelastomers market through Ausimont's Tecnoflon range. These products typically are used in automotive parts, O-rings, shaft seals, valve stem seals and gaskets.