Chemical manufacturer Saudi Basic Industries Corp., a 24.99 percent stakeholder in Clariant AG, said the two companies will temporarily defer discussions on a possible merger of Clariants additives and masterbatch areas into SABICs specialties business.
Sabic closed on its purchase of a 24.99 percent stake in Clariant in September 2018. The acquisition from White Tale and 40 North, made Sabic the largest anchor shareholder in Clariant. During the same month, Sabic announced the signing of a memorandum of understanding to begin discussions and a due diligence process to combine its future stand-alone specialties business with the additives and high-value masterbatch areas of Clariant. Clariants additives segment includes synthetic and semi-synthetic waxes used in applications such as lubricants and metalworking.
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Following that memorandum of understanding signing, … both companies have now reached a common understanding to temporarily defer these discussions due to current unfavorable market conditions, Sabic stated in a July 25 news release. Sabic looks forward to continuing these discussions once conditions have improved, as we remain committed to our strategic growth ambitions in the areas of specialties.
The company said the decision does not impact the performance of Sabics specialties business or its ongoing costumer commitments.
Riyadh, Saudi Arabia-based Sabic manufactures some chemicals used in the manufacturing of lubricants and surfactants, such as ethanolamines and linear alpha olefins.