Solvay in talks with One Investment Management on rare earths partnership
EXCLUSIVE-Solvay in talks with One Investment Management on rare earths partnership By Melanie Burton and Eric Onstad
MELBOURNE/LONDON, Sept 8 (Reuters) - Belgian chemicals group Solvay SOLB.BR is in talks with One Investment Management about a potential strategic partnership for its rare earths business, Solvay told Reuters on Tuesday.
A deal would give OneIM, run by former SoftBank executive Rajeev Misra, exposure to rare earths processing, complementing its existing investments in the sector, which is dominated by China.
Two sources with knowledge of the matter told Reuters that Solvay and OneIM have been holding talks since March about Solvay's rare earths operations.
Rare earth minerals are critical for the energy transition, electronics and defence industries, and Western countries are seeking to reduce their reliance on China for supply.
"In response to recent rumors ... Solvay confirms that it is currently engaged in discussions regarding a potential strategic partnership with OneIM regarding its rare earths business," the company said in an emailed statement in response to a query from Reuters.
"There can be no certainty at this stage that these discussions will result in any agreement or transaction. A further announcement will be made if and when appropriate."
OneIM did not immediately reply to a request for comment.
Solvay's rare earths unit includes a processing plant in France that was among the world's largest four decades ago.
While the business accounts for only a small part of Solvay, which produces chemicals including soda ash and speciality polymers used in cars and aircraft, it is considered a strategic asset because of its processing expertise.
The company's 78-year-old processing plant in La Rochelle on France's Atlantic coast set the benchmark for global rare earth prices in the 1980s and 1990s and is one of the only plants outside of China that can separate all 17 rare earth elements.
OneIM is run by Misra, former CEO of SoftBank Group's 9984.T massive Vision Funds, and has invested in a string of rare earths companies, some of which have already negotiated supply deals with Solvay.
Misra stepped down from SoftBank in 2022 to found OneIM along with Yanni Pipilis and other former SoftBank executives.
The alternative investment manager, with offices in Abu Dhabi, London, New York and Tokyo, manages $11.8 billion in assets.
(Reporting by Melanie Burton in Melbourne and Eric Onstad in London. Editing by Mark Potter)
((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))