Solvay to Book $185 Million Loss as It Reaches Deal to Sell Stake in Russia Business

By Joshua Kirby

Solvay SA said Friday that it has agreed a deal to sell its share in Russian joint venture RusVinyl to its partner Sibur, in a transaction that will entail booking a capital loss of 175 million euros ($185.4 million).

The sale of the 50% stake in RusVinyl--which operates a polyvinyl chloride, or PVC, plant in the Nizhny Novgorod region of Russia--is based on a purchase price of EUR430 million, the Belgian chemicals company said. The loss it will book mainly relates to the crystallization of historical currency translation balances, Solvay said.

The disposal is the final step in a strategy to exit its cyclical PVC operations, Solvay said.

"The divestment will represent another important milestone in the transformation of Solvay's portfolio," the company said, adding that the transaction should be completed toward the end of this quarter.

Following Russia's invasion of Ukraine a year ago, Solvay said it would suspend its operations in the country, and would halt dividend payments from RusVinyl, a JV with petrochemical holding company Sibur.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

March 03, 2023 12:25 ET (17:25 GMT)

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