Published Date : 2019-08-06 Author : Anjali
Clariant, the Swiss-based specialty chemicals firm, has announced a temporary suspension of its discussions with SABIC regarding the intended business combination High-Performance Materials (HPM), comprising of Clariant’s Additives and high-value Masterbatches as well as parts of SABIC’s Specialties business. Taking into consideration the current market scenario, the two companies have agreed that hitting the brakes on the negotiations will be the optimum solution for the shareholders of both companies. In keeping with the portfolio upgrade Clariant unveiled in September last year, the company will resume the divestment of the pigments business and has also decided to divest its entire Masterbatches business including both standard and high-value Masterbatches. The divestments are expected to continue on the same schedule, to be concluded by the end of 2020.
The proceeds from the divestments will be dedicated towards innovations and technological applications in Clariant’s core business domains, to fortify its financial standing and to generate enough capital to return to the shareholders. Clariant will benefit from these activities, with a stronger focus on unique, customer-centric solutions, and offerings with favorable growth prospects and above-average capital capacity. With the reconfigured portfolio structure, the company will be even more capable to focus on customer experience along with efficient and reliable customer fulfillment. It will also be able to work on the development of innovative and sustainable products and applications. This will give the organization the upper hand in the industry for customers and hence will allow Clariant to effectuate above-market growth, higher profitability, and an improved capital generation.
This announcement after Clariant recently inked an agreement for the sale of its Healthcare Packaging business. The Healthcare Packaging segment provides products that are used to protect pharmaceutical products from moisture and oxygen, including customizable, high-quality products, specially designed plastic bottles containing oxygen barrier material, and Integrated Desiccant Systems. The business has established manufacturing facilities in the USA, China, France, and India, with a workforce of nearly 600 employees.