Specialty Chemicals Shakeup

Earlier this week, Belgium-based Solvay announced its intention to acquire Rhodia of France for nearly $5-billion (USD). Solvay, a producer of caustic ash, soda ash, and polyvinyl chloride (PVC), is seeking to enter the specialty chemicals market just a year after selling off a pharmaceutical unit. Rhodia's position as a leading international chemical company with a strong presence in emerging markets meshes with Solvay's mission of moving away from commoditized sales.

Specialty chemicals range from ingredients in moisturizers to polymers for car parts. But Rhodia also brings other assets to the table. From its world headquarters near Paris, the company is a leader when it comes to the rare earth elements (REE) used in automotive catalytic converters. Rhodia is known, too, for the high-performance silica used in car tires, and products such as surfactants for consumer markets. With its six divisions and a presence in industries ranging from agro-chemicals to electronics, Rhodia also specializes in engineering plastics based on polyamide.

Solvay's acquisition of Rhodia is just the latest round in a corporate contest where BASF paid nearly $4-billion (USD) for Cognis and its specialty chemicals expertise. How will such mergers and acquisitions affect your purchasing decisions?