for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

Saudi SABIC lifts Swiss chemicals maker Clariant stake

FILE PHOTO: The headquarters of Saudi Basic Industries Corp (SABIC) is seen in Riyadh, Saudi Arabia April 19, 2016. REUTERS/Faisal Al Nasser/File Photo

(Reuters) - Chemical giant Saudi Basic Industries Corporation (SABIC) 2010.SE said on Tuesday that it had raised its stake in Swiss chemicals maker Clariant CLN.S to 31.5% from 25%.

SABIC, which is Clariant’s largest shareholder, said the increase was part of its strategy to achieve a leadership position in the Specialties business.

The company’s decision to hike its stake comes after it took an impairment charge of 1.5 billion riyals ($400 million) on its investment in Clariant in its third quarter.

SABIC is just shy of the one-third stake that would require it to make an offer for all of Clariant, but Clariant said it did not expect the Saudi chemical giant to seek a takeover.

SABIC had previously said it had no interest in taking Clariant over after the Muttenz-based company shelved a joint venture plan in July last year.

Reporting by Samantha Machado in Bengaluru; Editing by Alexander Smith

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up