SABIC Has No Interest in Taking Over Clariant, Says CEO

Saudi Basic Industries Corporation (SABIC) Vice Chairman and Chief Executive Officer Yousef Abdullah al-Benyan speaks during a press conference held in the SABIC HQ in Riyadh, Saudi Arabia  (File Photo: Reuters)
Saudi Basic Industries Corporation (SABIC) Vice Chairman and Chief Executive Officer Yousef Abdullah al-Benyan speaks during a press conference held in the SABIC HQ in Riyadh, Saudi Arabia (File Photo: Reuters)
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SABIC Has No Interest in Taking Over Clariant, Says CEO

Saudi Basic Industries Corporation (SABIC) Vice Chairman and Chief Executive Officer Yousef Abdullah al-Benyan speaks during a press conference held in the SABIC HQ in Riyadh, Saudi Arabia  (File Photo: Reuters)
Saudi Basic Industries Corporation (SABIC) Vice Chairman and Chief Executive Officer Yousef Abdullah al-Benyan speaks during a press conference held in the SABIC HQ in Riyadh, Saudi Arabia (File Photo: Reuters)

Saudi Basic Industries Corporation has no interest in taking over Swiss chemicals firm Clariant AG after halting talks last week on their high-performance plastics venture, announced SABIC Vice Chairman and CEO Yousef al-Benyan.

Speaking at a press conference at the company’s headquarters in Riyadh, Benyan said that Saudi Aramco is in the process of purchasing a 70 percent stake in the company.

He indicated that the deal is expected to be completed by the end of 2019 or during Q1 of 2020.

Benyan explained that upon completing the measures required for Aramco to obtain the necessary approvals to complete the process, there will be joint work between SABIC and Aramco to identify and chart the course of the petrochemical industry in Saudi Arabia.

Both companies will also work hard to achieve the 2025 strategy, which SABIC is working to establish.

The CEO addressed tensions and trade disputes between the United States, China and other global markets this year, saying they have affected SABIC's performance and profits.

He then announced that SABIC has no interest in taking over Clariant and describing its 25 percent stake in the company as “a long term strategic investment.” 

“We have no interest in a full takeover, if that’s your question, but we have interest to grow our share and make sure that we can bring positive growth and retain investment for SABIC and Clariant shareholders,” responded Benyan to a reporter’s question.

The slowdown in global GDP growth coincides with a decline in petrochemical prices due to a significant increase in new supply capacity resulting in lower product prices and margins in key product lines, according to Benyan.

He admitted that lower petrochemical prices have negatively impacted SABIC’s Q2 results, even though the company’s operational performance remains robust.

“SABIC remains optimistic on industry fundamentals over the long term and we continue to invest for growth. We recently received all the regulatory approvals to increase our stake in Ar-Razi, the world’s largest methanol complex, to 75 percent and renewed our partnerships with Japan Saudi Arabia Methanol Company (JSMC) for a further 20 years.”

The CEO announced that SABIC has obtained all approvals to establish a petrochemical joint venture project with ExxonMobil in the US Gulf Coast.

SABIC also signed a Memorandum of Understanding (MoU) to scope a new solar PV-based power plant in Yanbu Industrial city that could have a potential capacity between 200 to 400 Mega Watt. This project would be the Kingdom's first large scale renewable energy project built for and by the private sector.

Benyan explained that this initiative goes in tandem with SABIC’s wider sustainability efforts and in June the company launched its Sustainability Roadmap aligned to the United Nations Sustainable Development Goals (SDGs).

This plan outlines SABIC’s ambitious targets relating to resource efficiency, climate change, the circular economy, food security, sustainable infrastructure, and preservation of the environment. 

SABIC Q2 profit plunged to the lowest level since 2009 as demand for chemicals and plastics declined. Its shares dropped as much as 3.8 percent in Riyadh. 

The company's net income, after Zakat and tax, dropped to $565 million by June 30, compared to $909.3 million during the same period of 2018, based on the company’s report distributed during the press conference.

The report noted that the increase in global production of basic products, which negatively affected product prices and profit margins in the first half of 2019, is expected to continue to affect the company's profits during the second half as well.

According to the report, total sales in the second quarter amounted to $9.5 billion, down 17.12 percent from the same quarter last year and a decrease of 4 percent compared to the previous quarter.



Dollar Slips before Inflation Report, US-China Tariff Deadline

An employee counts US dollar notes at a money changer in Jakarta, Indonesia, Thursday, Aug. 7, 2025. (AP Photo/Tatan Syuflana)
An employee counts US dollar notes at a money changer in Jakarta, Indonesia, Thursday, Aug. 7, 2025. (AP Photo/Tatan Syuflana)
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Dollar Slips before Inflation Report, US-China Tariff Deadline

An employee counts US dollar notes at a money changer in Jakarta, Indonesia, Thursday, Aug. 7, 2025. (AP Photo/Tatan Syuflana)
An employee counts US dollar notes at a money changer in Jakarta, Indonesia, Thursday, Aug. 7, 2025. (AP Photo/Tatan Syuflana)

The US dollar extended declines on Monday as investors watched for the outcome of events due this week, from Tuesday's key July US CPI data and deadline for Washington and Beijing to strike a tariff deal, to a Russia-US summit on Friday.

The dollar index fell 0.2% to 98.073 after last week's fall of 0.4%. Against the yen, it traded at 147.46 , or 0.20% weaker than late US levels, with Japanese markets closed for the Mountain Day holiday.

"If I'd be playing it any way, I'd be long volatility this week," said Tim Kelleher, head of institutional FX Sales at Commonwealth Bank in Auckland, citing the unpredictability of the looming events.

Crypto markets surged, with bitcoin rising 3% to $121,909.06, not far from its July 14 record of $123,153.22, after President Donald Trump's executive order on Thursday freed up cryptocurrency holdings in US retirement accounts.

Ether was up 2.1% at $4,307.25, after touching its highest since December 2021 earlier in the session.

Trade talks were also in focus as Trump's August 12 deadline for a deal between the US and China neared, particularly on chip policy.

"The market has fully priced in the idea that we're going to get an extension," said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne, adding that another 90-day truce was most likely.

With the US and China seeking to close a deal averting triple-digit goods tariffs, a US official told Reuters that chip makers Nvidia and AMD agreed to allocate 15% of China sales revenues to the US government, aiming to secure export licenses for semiconductors.

"I don't know if that's going to be a good thing or a bad thing, but if it puts closure on the matter, it's not a bad outcome," Weston said.

"If this is Trump says 15% and we'll call it a day, that may not be too bad."

The report followed a warning that Nvidia's H20 chips pose security concerns for China, a social media account linked to state media said on Sunday.

The offshore yuan fluctuated between gains and losses, trading at 7.184 to the dollar, after weekend data showed China's producer prices fell more than expected in July, while consumer prices were unchanged.

The Australian dollar fetched $0.6526, trading flat ahead of a rate decision by the central bank on Tuesday, in which it is widely expected to cut interest rates by 25 basis points to 3.60%, after second-quarter inflation missed expectations and the jobless rate hit a 3-1/2-year high.

The kiwi was little changed at $0.59545, while the British pound traded at $1.3465, up 0.1% so far on the day.

Elsewhere, personnel moves at key US monetary policy institutions were also in focus.

US Treasury Secretary Scott Bessent said the new Federal Reserve chair should be someone "who can examine the whole organization" as the Fed's mission covered many things outside of monetary policy and put its independence at risk, Japan's Nikkei newspaper said.

Among candidates the Trump administration is interviewing to lead the Bureau of Labor Statistics is E.J. Antoni, chief economist at the conservative Heritage Foundation, the Wall Street Journal said, citing a senior administration official.