Phosphates for sale

today announced it and

have reached a definitive agreement to sell

, their 50/50 specialty phosphates joint venture.

Under the terms of the agreement, Israel Chemicals Limited (ICL) will purchase all of the assets of Astaris for $255 million. The transaction is subject to bankruptcy court approval, regulatory clearance and various other conditions and contingencies.

"The Astaris divestiture is the latest step forward in a key component of our reorganisation strategy: building a portfolio of high-potential businesses to form the core of reorganised Solutia," said Jim Sullivan, senior vice president and chief financial officer, Solutia. "While Astaris has benefited greatly from restructuring actions taken during 2004, it is a non- core asset to Solutia that is a better strategic fit for a company such as ICL."

Solutia will use the proceeds of the Astaris sale to partially pay down the term loan portion of its debtor-in-possession (DIP) financing.