Saudi Basic Industries Corp (SABIC) has agreed to acquire approximately 83 million shares in Clariant, a global specialty chemicals company, from 40 North and Corvex Management.
With the purchase of a 24.99 percent stake, Riyadh-based SABIC becomes Clariant’s largest investor, Sabic said in a statement Thursday, pointing out that its move represents another key milestone in its growth and diversification strategy to become the preferred world leader in chemicals.
“This acquisition is part of SABIC's long-term growth strategy to remain committed to product differentiation and creating value for its customers. Clariant AG 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 CEO Yousef al-Benyan said in a statement.
SABIC currently has no plans to launch a full takeover of Clariant, Benyan added.
For his part, Co-CEO of Standard Industries and 40 North David Millstone said: "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."
SABIC and Clariant have already had a successful relationship in their joint venture, Scientific Design, a process technology and catalyst development company.