Clariant to collaborate with SABIC on High Performance Materials Business
Global speciality chemicals company Clariant has announced an updated strategy for its speciality chemicals segment, alongside a collaboration with SABIC on high performance materials.
By 2021, it will combine its Additives and high value Masterbatches (colour, high temperature resins and health care) businesses into a High Performance Materials division, with parts of SABIC’s Specialties business. It will also divest its remaining Plastics & Coatings Business, including Pigments, standard Masterbatches and Medical Specialties.
By doing so, it hopes to deliver significantly higher sales of around CHF9 billion (US$9.4 billion). It has also announced new sustainability, customer solutions and financial targets for 2021 in each business area.
Clariant will have the majority stake in the intended business combination and the companies intend to sign a definitive agreement by the first half of 2019. Completion of the transaction is expected to take place towards the end of 2019.
SABIC, the world’s third largest diversified chemical company, has also acquired a 24.99% stake in Clariant. The purchase makes SABIC Clariant’s largest strategic anchor shareholder and second anchor shareholder beside the group of former shareholders of Süd-Chemie. SABIC is a longstanding partner of Clariant in the Catalyst joint venture, Scientific Design. It entered into a purchase agreement with the company in January this year.