SABIC-affiliate Clariant to sell unit in $1.56 billion deal

Clariant's logo at the company's headquarters in Switzerland. (File photo: Reuters)

Swiss chemicals giant Clariant AG said on Thursday it agreed to sell its Masterbatches business to US-based PolyOne Corp in a deal valued at $1.56 billion deal.

This comes after talks of a joint venture between Clariant and its shareholder, the Saudi Basic Industries Corp (SABIC), fell through earlier this year due to differences.

“This announcement is a significant milestone on our path to focusing on businesses with above-market growth, higher profitability and stronger cash generation,” Clariant’s executive chairman Hariolf Kottmann said in a statement.

Clariant will pay shareholders about $1 billion from the proceeds. Shares of SABIC, which owns a 25 percent stake in the company, were slightly up at 91.70 riyals on the Saudi Stock Exchange.

Clariant’s Masterbatches unit, which sells color and additive concentrates used in plastics, posted sales of $1.2 billion in 2018.

The Muttenz-based company’s businesses range from oil and mining services to making chemicals used by the plastic industry.

Last Update: 09:24 KSA 12:24 - GMT 09:24