SVP Said to Bid for PVC Site Pivotal for Ineos, SolvayAndrew Noel
Strategic Value Partners LLC’s Vestolit GmbH is among bidders for a German polyvinyl chloride plant put up for sale by Ineos Group Holdings, according to two people with knowledge of the matter.
A sale of the site in Schkopau, Germany, is crucial for chemical companies Ineos and Solvay SA to get regulatory approval for the planned 4.3 billion-euro ($5.8 billion) merger of their PVC operations. Vestolit would add the site to its existing PVC facility in Marl, said the people, who asked not to be identified because the discussions are private.
Strategic Value Partners, founded by former Merrill Lynch & Co. managing director Victor Khosla, declined to comment.
Ineos and Solvay announced the PVC merger in May to cut costs in areas from transport to marketing and raise profitability at a commodity business suffering from inflated raw material and energy costs. The company are in talks with European Commission regulators to win approval and a sale of the Schkopau site, valued at about 60 million euros, may be announced this year, the people said.
The PVC industry is facing overcapacity and weak demand in Europe, prompting companies in the labor-intensive and power-hungry industry to explore mergers. Vestolit previously explored a merger with Vinnolit, a PVC maker owned by Advent International, though no agreement was reached.