SABIC ups stake in Clariant to 31.5%, close to mandatory takeover offer

Published: 7 March 2020 - 5 a.m.
By: Martin Menachery
SABIC has increased its stake in Clariant to 31.5%, the Saudi-Arabia-headquartered petrochemicals company said.

Shares in the Swiss-headquartered specialties player rose over 4.5% in trading after news emerged that SABIC had upped its holding in the company from 24.99%, according to a filing on Saudi Arabia’s Tadawul bourse.

According to local securities laws, an investor increasing its stake in a publicly-traded company to over a third triggers a mandatory takeover offer.

SABIC itself is in the process of being acquired by Saudi state oil and gas major Saudi Aramco.

SABIC ramping up its holding in Clariant positions the business as one of the most likely takeover targets in the European chemicals sector, according to analysts at Baader Bank.

“Clariant remains among the most likely takeover targets in the EU chemicals space,” Baader said in an investor note.

Last July, SABIC said that it had no interest in taking over Clariant after the Swiss company abandoned a joint venture plan due to differences over asset prices.

In the same month, SABIC acquired a 24.99% stake in Clariant after the signing of a memorandum of understanding in September 2018.

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