Solvay selling drugs unit to Abbott for $6.6 billion

In a move to create funds for investment in plastics, Belgium-based material supplier Solvay is selling its drugs unit to U.S. partner Abbott Laboratories for US$6.6 billion.

“We are building a new refocused group with the financial means to further accelerate sustainable growth,” Solvay’s board chairman Alois Michielsen said in a statement.

The transaction is expected to close in the first quarter of 2010, upon approval by competition authorities.

According to Solvay, the proceeds from the deal will be reinvested in external and organic growth in strategic projects in chemicals and plastics with a sharp focus on long-term value creation.

“What is important is that we have the cash in house. What we will aim at is reinvesting in activities securing a sustainable growth,” said Solvay’s chief executive Christian Jourquin.