World News

Saudi SABIC lifts Swiss chemicals maker Clariant stake

(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)