According to a Reuters report on September 18th in Zurich, Clariant said on Tuesday that it will merge its Saudi Arabian Foundation Industries (SABIC) with its high-performance materials business to focus on high-value specialty chemicals.
Under the terms of the transaction, Clariant will hold a majority stake in the new combined business, which will combine its additive and high-value masterbatch business with some of SABIC's professional business.
The company said in a statement that by 2020, Clariant will sell the remaining plastics and coatings business.
In pre-market trading, Clariant's stock rose 5.8%.
According to a management agreement signed on Tuesday, Clariant's board of directors will be expanded from the current 10 members to 12, of which 4 will be nominated by SABIC.