In a breakthrough business deal, the bosses at the Solvay have finally confirmed their decisions for the purchase of their French rival Rhodia.

The Belgian chemical company has bid for the French firm Rhodia for cash worth 3.4 billion euro that is near to $4.8 billion.

A market analyst at ING, Jan Hein De Vroe called the Rhodia as one of the cheapest and most easily accessible stock in the European chemicals space at present. He added that the acquisition of Rhodia by Solvay is a part of a well-planned strategy.

It is estimated that when combined, the Rhodia and Solvay are very well capable of yielding the sales of approximately 12 billion euros. That clearly means that the 40% of the business in the chemical market will be ruled by the two.

A spokesman for the Solvay said that the company is expecting to boost the sales as well as the profits. He added that an annual cost saving of 250 million euros is also expected.

An analyst at ABN Amro, Mark van der Geest stated: “It is positive that the uncertainty is out of the way, the multiple paid is not excessive and it provides Solvay with more emerging markets presence. Rhodia will make Solvay a less cyclical company”.