Sabic approved to buy minority stake in Clariant
Chemical maker Sabic has won regulatory approval to buy a quarter of Swiss chemicals maker Clariant, which will make it Clariant's biggest single shareholder.
Chemical maker Saudi Basic Industries Corp. (Sabic) has won regulatory approval to allow it to buy a quarter of Swiss chemicals maker Clariant.
Saudi Arabia-based Sabic, said to be the fourth largest chemical maker in the world, first announced in January that it wanted to buy a 24.99 per cent stake in Clariant from activist investors, which would rescue Clariant from a hostile takeover threat.
When the transaction closes, Sabic will become Clariant’s biggest shareholder, ahead of a German family group that has held about 14 per cent since selling holdings in Bavarian-based Sued-Chemie in 2011.
In a statement, Sabic said it has no plans to buy a majority stake in Clariant holding.
Sabic and Clariant have a longstanding business relationship: Sabic is a Clariant customer, and the two companies have a plant design joint venture called Scientific Design, which generates shared revenue of about US$80 million annually.