Solvay has agreed to buy Rhodia for 3.4 billion (U.S. $4.8 billion), bringing together two global chemical manufacturers whose products include lubricants, greases and metalworking fluid additives.
The cash offer of 31.60 per share for all of Rhodias share capital will be launched in France and extended to the United States. Solvay will make a tender offer conditional upon regulatory approvals and upon a minimum acceptance level of 50 percent plus one share in the coming days, with closing expected by late August 2011.
The products of Rhodia of Lyon, France, include anti-wear and extreme pressure additives, corrosion inhibitors, emulsifiers and surfactants. The company also makes a variety of oxygenated solvents used in lubricants. Rhodia also makes wet steel cord drawing lubricants that are mainly used in the tire industry.
Brussels, Belgium-based Solvay is an international industrial group. Its products include a variety of fluorinated fluids, lubricants and greases. It also makes chlorinated solvents and a variety of specialty polymers.
Solvay employs 16,800 people in 40 countries, while Rhodia has 14,000 employees worldwide.