Clariant and Sabic to merge parts of their materials businesses
A memorandum of understanding signed by the two companies calls for Clariant to combine its additives and high value masterbatches with parts of Sabic's specialties business to create a new joint venture business for high performance materials.
Swiss specialty chemicals maker Clariant AG has signed a memorandum of understanding with competitor Sabic to merge parts of their businesses in a bid to create a leading supplier of high-performance materials.
The agreement follows Sabic’s takeover of a 24.99 per cent stake in Clariant in early September. Saudi Arabia-based Sabic has said repeatedly that it has no interest in launching a full takeover of Clariant.
The agreement calls for Clariant to combine its additives and high value masterbatches — colour, high temperature resins and health care — with parts of Sabic’s specialties business to create a new joint venture business for high performance materials.
Clariant will have the majority stake in the intended business combination.
Clariant will divest the remaining Plastics & Coatings business by 2020, it said in a statement.
“This new business area will offer a customer-specific, application know-how driven and competitively advantaged product range of high-performance thermoplastics for demanding thermo-electro-optical and mechanical environments, specialty additives and masterbatches in tandem with an outstanding global compounding platform,” Clariant said. “Major applications include smart electronics, health care, aerospace, automotive, robotics, additive manufacturing, renewable energy, and e-mobility.”
A definitive agreement is expected to be signed in the first half of 2019 with the business, which is estimated to create over 3.5 billion euros (US$4 billion) in sales by 2021. The new business is set to launch on Jan. 1, 2020, subject to regulatory approvals.