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Clariant re-launches pigments unit sale, with multiple bidders

October 20/2020

MOSCOW (MRC) -- Clariant is relaunching the sale of its pigments unit, after putting the auction on hold as the coronavirus pandemic engulfed the world and disrupted talks with prospective buyers, reported Reuters with reference to the Swiss specialty chemicals company's statement.

The Muttenz-based company is expected to send out information packages to prospective buyers of the unit this month, and people familiar with the preparations added that buyout groups including PAI, Lone Star, Triton and SK Capital are expected to express interest.

The potential bidders declined to comment or were not immediately available for comment.

"We are continuing our transformation program which has so far seen the successful divestment of the Healthcare Packaging and Masterbatches businesses, by resuming the process for this planned divestment," a Clariant spokesman said.

Before the company said in April the sale process was delayed, the unit which makes dyes including for the car and building industries was expected to fetch up to 900 million Swiss francs (USD984 million), or around 8 times core earnings.

The impact of the pandemic has weighed on the business and it may now fetch less, one of the people said. Clariant said the business has successfully mitigated the pandemic's impact as well as boosted efficiency.

"As a result, Clariant Pigments remains a leading global player in the industry and as such, any convincing offer will have to reflect this leading position," the spokesman said.

Clariant's failed merger with Huntsman, in the face of activist investor resistance, and the joint venture it abandoned in August with Saudi Basic Industries (SABIC) have led to asset sales beyond what the Swiss company originally envisioned.

Clariant is concentrating on its faster-growing segments including catalysts, ingredients for shampoos, and chemicals for the oil and gas industries, while divesting commoditized operations.

As MRC reported before, in early September, 2020, the Competition Commission of India (CCI) cleared SABIC BV's incremental acquisition of a 6.51% shareholding in Clariant AG. The transaction, which will raise SABIC's stake in Clariant to 31.5%, is part of SABIC's growth strategy in specialties.

We remind that in May 2020, Clariants CATOFIN catalysts was selected by Advanced Global Investment Co. (AGIC), a joint venture between Advanced Petrochemical Company (APC) and SK Group, to build a PDH facility in the Middle East.

Propylene is the main feedstocks for the production of polypropylene (PP).

According to MRC's ScanPlast report, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
Author:Margaret Volkova
Tags:Near East, pigments, PP, PP random copolymer, propylene, paints and coatings, Clariant International, Huntsman, Sabic, SK Corporation, Russia, USA, South Korea.
Category:General News
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