SABIC seemingly eager to partner Swiss chemical firm Clariant AG
Category: #headlines  By Mateen Dalal  Date: 2019-07-29
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

SABIC seemingly eager to partner Swiss chemical firm Clariant AG

The company is looking forward to joining Clariant after an improvement in market conditions.

Saudi Basic Industries Corp. (SABIC), one of the largest public corporations in the Middle East and Saudi Arabia, has announced plans to partner Clariant AG, a Swiss specialty chemicals company, most likely after its market condition stabilizes.

According to some analysts, SABIC, which maintains a 25% stake in Clariant, was considering acquisition of the Swiss firm after its chief executive quit the previous week, following which Clariant announced a loss in the first half of 2019 and agreed on its joint venture with SABIC.

However, according to Yousef al-Benyan, Chief Executive Officer, SABIC, the company is not looking to completely acquire Clariant, although it is interested to grow their share and make sure it retains their investment for SABIC and Clariant’s shareholder. He added that their firm’s investment in Clariant is tactical and long-term, and is considered to be a growth opportunity.

Reportedly, Benyan’s statement comes after SABIC recorded a 68% drop in second-quarter net profit, its lowest quarterly return since 2009. He claims that the rescheduling of agreement over a partnership to infuse Clariant’s additives and specialty masterbatches trade with SABIC’s specialty chemicals operation was due to fluctuations in market condition.

As for SABIC, its net profit has fallen from 6.7 billion riyals in 2018 to 2.12 billion riyals in the April-June quarter. The company estimates this downfall to be caused by decrease in the share of contributions from associates & joint ventures and low average selling prices.

Meanwhile, Benyan claims that, assuming the current market conditions continues for the rest of the year, SABIC expects to see a similar result for the second half of 2019. He said that the company would focus on reliability, offering customers varied solutions and cost management.

Furthermore, he claims that a slump in international GDP growth is directly related to the decline in petrochemical rates due to a substantial growth in supply capacity leading to lower product prices and margins in key product lines.

Source Credit: https://www.euronews.com/2019/07/28/sabic-still-keen-on-clariant-joint-venture-once-conditions-improve

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More..

More News By Mateen Dalal

Xiaomi and Oppo team up with UNISOC to manufacture in-house 5G chipsets

Xiaomi and Oppo team up with UNISOC to manufacture in-house 5G chipsets

By Mateen Dalal

The two companies intend to introduce their custom-made sub-6GHz 5G chipsets by the end of 2021. UNISOC has managed to raise around USD 817.20 million for its new venture. Chinese electronics giants including Xiaomi Corp. and Guangdong Oppo Mob...

Twitter explored USD 4 billion takeover of audio-chat app Clubhouse

Twitter explored USD 4 billion takeover of audio-chat app Clubhouse

By Mateen Dalal

Twitter, an American microblogging service company, had touted plans of acquiring Clubhouse, an audio chat iPhone app and live drop-in audio networking platform. The deal was estimated to be valued at around USD 4 billion, as per reliable sources. T...

Beyond Meat sets up factory in China to expedite localized innovation

Beyond Meat sets up factory in China to expedite localized innovation

By Mateen Dalal

American plant-based meat substitute producer Beyond Meat has opened a new production facility in China. Apparently, this recent setup is the company’s first facility outside the U.S., making it the only multinational organization solely focusi...