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.
September 11, 2018 by Canadian Plastics
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.