Sabic acquires 24.99% stake in Clariant

Sabic acquires 24.99% stake in Clariant

Saudi giant acquires stakes previously held by activist investors

Plastic masterbatch and additives supplier Clariant has reported the acquisition of a 24.99% equity stake in the company by leading resin supplier Saudi Arabia’s Sabic. The Saudi firm acquired the stakes that were previously held by activists investor White Tale through Corvex Management, the hedge fund run by Keith Meister, and industry investor 40 North. This makes Sabic the largest Clariant shareholder. White Tale had previously scuttled the proposed $20 billion Clariant-Huntsman merger last year.

According to a statement made to the Saudi stock exchange, Sabic “currently has no plans” to make a takeover offer for Clariant, which didn’t disclose financial terms. The stake has a market value of about 2.35 billion Swiss francs ($2.5 billion) based on Wednesday’s closing price for Clariant. “Sabic’s strategic investment in Clariant is a successful outcome and we are pleased to have played a role in making it possible,” David Millstone, co-chief investment officer of 40 North, added in the Saudi company’s statement.

Among Clariant’s specialty product portfolio is Licocene metallocene-catalyzed polyolefin waxes used as carriers in masterbatches, among other applications.

As is customary in the industry, Clariant was informed of Sabic’s intention to acquire the shares prior to the transaction. SABIC itself has a significant specialty chemicals business and is a partner of Clariant in the catalyst joint venture Scientific Design.

Clariant intends to engage with Sabic over the coming weeks in order to discuss the new situation and explore possible ways to create value. Clariant says it will also continue the existing dialogue with all its other shareholders.

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