Solvay named preferred bidder to buy Solus Biotech

Belgian chemicals maker Solvay S.A. has been selected as the preferred bidder to acquire South Korean biomaterials maker Solus Biotech, according to investment banking sources on Dec. 28.

If clinched, the deal is expected to be valued at about 350 billion won ($276.7 million) for a 100% stake deal.

Four global companies joined the bid for the deal on Dec. 23 — Solvay, German specialty chemicals company Evonik Industries AG, US food processing giant ADM, and UK chemicals maker Croda International plc.

Among the bidders was German chemical giant BASF SE, according to some local media reports on Dec. 26. The chemicals firm didn't participate in the Dec. 23 bid, The Korea Economic Daily has found.

Solvay is said to have suggested an offer price higher than market watchers' expectations. The Belgian company did so to beat the price suggested by Evonik, which is a global player in the ceramides market alongside Solus Biotech, sources said.

Solus Biotech dominates the Korean ceramide market. It supplies the ingredient to global cosmetics group L'Oreal.

The biomaterial maker was split off from Korean copper foil maker Solus Advanced Materials Co. last year. Solus Biotech is forecast to post 50 billion won in revenue and 10 billion won in earnings before interest, taxes, depreciation and amortization this year.

If the deal is closed, it will mark the first time Solvay acquires a Korean company.

Solvay has sought to acquire Korean companies in recent years. The Brussels-based company joined races to buy polyimide film giant PI Advanced Materials Co. and battery materials maker Iljin Materials Co. this year.

Write to Chae-Yeon Kim and Jun-Ho Cha at why29@hankyung.com
Jihyun Kim edited this article.