Riyadh, Saudi Arabia-headquartered SABIC (Saudi Basic Industries Corporation) has agreed to acquire approximately 83 million shares in Muttenz, Switzerland-headquartered Clariant, a global specialty chemicals company, from 40 North and Corvex Management. The acquisition of this approximately 24.9% stake in Clariant will make SABIC the largest Clariant shareholder.
SABIC said it currently has no plans to launch or otherwise effect a full takeover of Clariant.
According to the companies, Clariant is complementary to SABIC's existing specialties business and is well in line with SABIC's strategy of opening up new growth opportunities in specialty chemicals.
SABIC and Clariant have already had a successful relationship in their joint venture, Scientific Design, a process technology and catalyst development company.
David Winter, Co-CEO of Standard Industries and Co-CIO of 40 North, said, "SABIC is an established global leader in the chemicals industry with a world-class management team and a long-term, sophisticated vision for the future. We are confident that this transaction allows Clariant to continue on its path to becoming a global specialty chemicals leader."
David Millstone, Co-CEO of Standard Industries and Co-CIO of 40 North commented, "We have been significant shareholders of Clariant since 2016. SABIC's strategic investment in Clariant is a successful outcome and we are pleased to have played a role in making it possible."
The closing of the transaction is subject to completing regulatory approvals.
Clariant AG and Huntsman Corp. jointly abandoned merger plans valued at USD 20 billion last October because of opposition from activist investors had created "too much uncertainty". Activist investor White Tale and New York investment vehicle 40 North, had been campaigning against the tie-up for months and steadily strengthened its hand by accumulating more shares in Clariant.