Clariant to form JV with SABIC

ZURICH: Switzerland´s Clariant will merge its high-performance materials business with that of new anchor shareholder Saudi Basic Industries Corporation (SABIC) to focus on higher-value specialty chemicals, it said on Tuesday.

Under the terms of the deal, Clariant will hold a majority stake in the new combined business, which will bring together its Additives and high-value Masterbatches divisions with parts of SABIC´s Specialties business.

Clariant will divest the remaining Plastics & Coatings business by 2020, it said in a statement.

By 2021, the group aims to generate annual sales of around 9 billion Swiss francs ($9.36 billion), compared with 6.38 billion in 2017, and a margin on earnings before interest, tax, depreciation and amortisation (EBITDA) of around 20 percent. Shares in Clariant jumped 5.8 percent in pre-market trade. SABIC, the world´s fourth-largest chemicals maker, said in January it was buying a 24.99 percent stake from activist investors, rescuing Clariant from a hostile takeover threat.