Saudi Basic Industries Corp and Clariant AG announce business combination, signing of governance agreement and appointment of new Clariant CEO
Following the successful completion of the acquisition of 24.99% of the share capital of Clariant AG (Clariant) by Saudi Basic Industries Corp (SABIC), Clariant and SABIC announced on September 18, 2018 that they intend to combine Clariant's additives and high value masterbatches with parts of SABIC's specialties business to form the business area High Performance Materials. The new business area will create a uniquely positioned provider of highly customer-specific high performance materials and solutions and is expected to result in significant synergies. Details of the combination are to be determined by both parties in the coming months with the aim of completing the transaction towards the end of 2019.
On the same day, Clariant and SABIC announced the entering of a governance agreement that underlines the long-term commitment of SABIC. As strategic anchor shareholder, SABIC will have the right to nominate four members of the board of directors for election at the upcoming extraordinary shareholders' meeting of Clariant. Clariant further announced the appointment of Ernesto Occhiello, a former SABIC executive, as new CEO of Clariant effective as of October 16, 2018.
Lenz & Staehelin is advising SABIC in connection with these matters. The team is led by Hans-Jakob Diem (Corporate) and includes partner Matthias Oertle (Employment) and associates Simone Ehrsam (Corporate) and Patrick Schärli (Capital Markets).