SABIC looks to strengthen ties with Clariant: report

Saudi Basic Industries Corp (SABIC) is considering increasing its holding in Clariant and pursuing joint ventures as it looks to strengthen ties with the Swiss chemicals group, Reuters reported, citing sources familiar with the matter.

The Saudi chemical giant bought a 24.9 percent stake in Clariant this year and is expected to hike its stake over time, as well as intensify research and development with the Swiss firm, the sources said.

SABIC already has a New Jersey-based partnership with Clariant that licenses chemical process technology to customers including Huntsman and Akzo Nobel.

“SABIC’s narrative is clearly not to stay at 25 percent and do nothing,” a source said, adding that a combination of businesses would precede any potential merger.

In January SABIC said it had no current plans to launch a full takeover of Clariant.

It, however, wants to extract value from its investment in a friendly manner, as it does not want to be perceived as an aggressive acquirer and any attempt to hike its stake may take time, the sources said.