(CercleFinance.com) – Solvay fell by almost 28% on the stock market this Monday after the chemicals group completed the split of its most dynamic activities within a new autonomous entity called Syensqo which itself is taking off in stock exchange.
This strategic transformation should position Solvay as a world leader in essential chemicals, in areas such as air and water purification, clothing, automobile tires and thermal insulation.
Syensqo, for its part, inherited growth activities in batteries, green hydrogen, thermoplastic composites, renewable materials and biotechnologies.
While the former subsidiary is targeting a current operating margin (Ebitda) of around 25% by 2028, that of Solvay should be around 15% on the same date.
It is the boss of the former Solvay, Ilham Kadri, who will manage Syensqo, ‘which demonstrates the interest of one of the structures compared to the other’ according to analysts at Invest Securities.
The remainder of the Solvay group, which employs more than 9,000 people in 40 countries, will be managed by Philippe Kehren, general director, while Pierre Gurdjian will chair the board of directors.
At current levels, its market capitalization stands at around 2.2 billion euros, compared with a valuation of more than 9.8 billion euros for Syensqo, which posted a gain of 12% for its debut on the stock market.
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