MOU Merger of Sabic’s Specialties Business with Clariant Put on Hold
Under the MOU signed in 2018, Sabic aimed to combine its specialties business with the additives and high value masterbatch areas of Clariant. However, due to the current unfavourable market conditions, both the firms have temporarily postponed the discussion.
Saudi Arabia – As part of Sabic’s global strategy to become a top five global leader in specialties, on September 11, 2018, Sabic closed on its transaction to acquire a 24.99 % stake in Clariant. Along with that stake, Sabic became the largest anchor shareholder in Clariant. On September 18, 2018 Sabic announced the signing of a Memorandum of Understanding with Clariant, to open discussions and a due diligence process with the shared intent to combine its future stand-alone Specialties business with the additives and high value masterbatch areas of Clariant.
Following the signing of a Memorandum of Understanding between Sabic and Clariant to explore the possible merger of Sabic’s Specialties business with Clariant, both companies have now reached a common understanding to temporarily defer these discussions due to current unfavourable market conditions. Sabic looks forward to continuing these discussions once conditions have improved as it remains committed to its strategic growth ambitions in the area of specialties.
This decision does not impact the performance of Sabic’s Specialties business or its ongoing customer commitments.