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.



Asian Shares, US Futures Gain as Investors Resume Buying Despite Uncertainty over Tariffs 

Women ride bicycles past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP)
Women ride bicycles past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP)
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Asian Shares, US Futures Gain as Investors Resume Buying Despite Uncertainty over Tariffs 

Women ride bicycles past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP)
Women ride bicycles past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP)

Asian markets advanced on Tuesday, with Japan’s Nikkei 225 share benchmark initially shooting up more than 6% after it fell nearly 8% a day earlier.

Markets in Thailand and Indonesia tumbled, however, as they reopened after holidays. Trading was suspended briefly in Jakarta when the JSX index fell more than 9%. It was down 7.5% by midday. Thailand's SET lost 5.7%.

In Taiwan, the Taiex lost 4.4%, pulled lower by losses for Taiwan Semiconductor Manufacturing Corp., or TSMC, the world's largest computer chip maker. Its shares fell 4% on Tuesday and are down 13.5% since Trump announced his “Liberation Day” tariffs on April 2.

The rebound for most other regional markets followed a wild day on Wall Street, where stocks careened after President Donald Trump threatened to crank his double-digit tariffs higher.

Early Tuesday, China's Commerce Ministry said it would “fight to the end” and take unspecified countermeasures against the United States to safeguard its own interests after Trump threatened an additional 50% tariff on Chinese imports.

By early afternoon Tokyo time, the Nikkei 225 was up 5% at 32,691.34.

Hong Kong also recovered some lost ground, but not anything close to the 13.2% dive Monday that gave the Hang Seng its worst day since 1997, during the Asian financial crisis.

The Hang Seng gained 1.6% to 20,140.78, while the Shanghai Composite index jumped 0.9% to 3,124.77.

South Korea’s Kospi edged 0.1% higher to 2,331.80, while the S&P/ASX 200 climbed 1.7% to 7,471.10.

Markets in New Zealand and Australia also were higher.

On Monday, the S&P 500 sagged 0.2% as shell-shocked investors watched to see what Trump will do next in his trade war. If other countries agree to trade deals, he could lower his tariffs and avoid a possible recession. But if he sticks with tariffs for the long haul, stock prices may fall further.

The Dow Jones Industrial Average fell 349 points, or 0.9%, and the Nasdaq composite edged up by 0.1%.

All three indexes started the day sharply lower, and the Dow plunged as many as 1,700 points following even worse losses elsewhere in the world. But it suddenly surged to a gain of nearly 900 points in the late morning. The S&P 500, meanwhile, went from a loss of 4.7% to a leap of 3.4%, which would have been its biggest jump in years.

The spike followed a false rumor that Trump was considering a 90-day pause on his tariffs, one that a White House account on X quickly labeled as “fake news.” That a rumor could move trillions of dollars’ worth of investments shows how much investors are hoping to see signs that Trump may let up on tariffs.

Stocks quickly turned lower. Shortly afterward, Trump dug in further and said he may raise tariffs more against China after the world’s second-largest economy retaliated last week with its own set of tariffs on US products.

Trump’s tariffs are an attack on the globalization that’s shaped today's world economy and helped bring down prices but also caused manufacturing jobs to leave for other countries.

He has said he wants to bring factory jobs back to the United States, a process that could take years. Trump also says he wants to narrow trade deficits with other countries, but it's unclear how much room for negotiation there is on the US side or among its trading partners.

Indexes swung between losses and gains Monday, partly because investors are still hoping negotiations may forestall actual implementation of the stiff duties on all imports.

All that seemed certain Monday was the financial pain hammering investments around the world.

Oil has also fallen, hurt by worries that a global economy weakened by trade barriers will burn less fuel. A barrel of benchmark US crude oil dipped below $60 on Monday for the first time since 2021. Early Tuesday, it was up 90 cents at $61.60 per barrel.

Brent crude, the international standard, gained 89 cents to $65.10 per barrel.

In currency trading, the US dollar fell to 147.78 Japanese yen from 147.85 yen. The euro fell to $1.0976 from $1.0905.

The price of gold rose $32 to about $3,006.00 an ounce.

Bitcoin gained 4.1% to $80,130.00. On Monday it sank below $79,000, down from its record above $100,000 set in January.