SABIC Not Seeking to Acquire Clariant

SABIC Not Seeking to Acquire Clariant

Saudi Basic Industries Corporation (SABIC) has denied interest in acquiring Switzerland’s Clariant, SABIC CEO Yousef Al-Benyan told Asharq Al-Awasat.

SABIC owns a 25% stake in Clarent, which recently revealed that talks over the establishment of a joint venture (JV) with SABIC had been shelved. Clariant remains a strategic investment for SABIC, withe the Saudi company looking for investment opportunities, not an acquisition, according to Al-Benyan.

It worth noting that the CEO of the Swiss company, Ernesto Occhiello, previously decided to quit for personal reasons, after the company reported net losses during H1 2019.

Meanwhile, Al-Benyan noted that the deal which is expected to see Saudi Aramco acquire the Saudi Public Investment Fund’s (PIF) 70% stake in SABIC will strengthen the petrochemical industry, as both companies will be working together to achieve the 2025 strategic goals.

SABIC’s profits declined in the Q2 2019 due to falling prices and the decrease in its share in JVs. Moreover, SABIC has recently received regulatory approvals to increase its stake in Al Razi, the largest methanol complex in the world, to 75%, as well as to establish a petrochemicals JV with ExxonMobil in the US Gulf Coast.

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