July 25, 2019 / 10:03 AM / 4 months ago

SABIC JV failed over price differences - Clariant CFO

ZURICH, July 25 (Reuters) - Clariant’s and Saudi Basic Industries’ joint venture failed over clashing price expectations, Clariant finance head Patrick Jany said, as the Swiss group decided it would have to overpay and the Saudis concluding they would get too little to close the deal.

“It’s a normal process, when you have a buyer and a seller, and the market conditions are unfavourable for that business, at one point in time it’s only fair that both recognise that they won’t get to the values they were expecting,” Jany told Reuters in an interview on Thursday.

“From the sellers side it wouldn’t make sense for them, they probably would receive less proceeds than they expected, and for us, it doesn’t make sense, because we would probably have to, in our view, pay too much for the business.”

The plan, announced in September 2018, would have seen Clariant buying parts of SABIC to create a new business sales of 3.1 billion Swiss francs ($3.04 billion) and to be controlled by Clariant.

“We both agreed we would temporarily back out,” Jany said.

$1 = 0.9867 Swiss francs Reporting by John Miller, editing by John Revill

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