Rhodia announced on June 16 the acquisition of Feixiang Chemicals (Zhangjiagang), China’s leading producer of amines and surfactants, for a price based on an enterprise value of US$489 million for 100% of the company. The current majority owner will retain 12.5% of the capital over the next two years. The completion of the transaction is subject to various customary closing conditions, including approval of the Chinese authorities. It is expected to be finalized in the second half of 2010.

Headquartered in Zhangjiagang near Shanghai, Feixiang Chemicals employs about 650 people.

Shearman & Sterling is assisting Rhodia on this transaction with a team led by Jacques Naquet-Radiguet.