CCI approves SABIC's additional acquisition in Clariant A Gunder
04 September 2020
The Competition Commission of India (CCI) has approved acquisition of an additional 6.51 per cent stake in Clariant A Gunder by SABIC International Holdings BV.
The proposed combination relates to an incremental acquisition of 6.51% shareholding in Clariant AG by SABIC BV (a wholly owned affiliate of Saudi Basic Industries Corporation (SABIC).
SABIC is a listed joint stock company established by royal decree of the Kingdom of Saudi Arabia. SABIC is listed on the Saudi Stock Exchange and has operations in over 50 countries. SABIC BV is the holding company of SABIC's international operations, including SABIC's investments in the specialties sector. The four product segments in which SABIC is mainly active are petrochemicals, agri-nutrients, metals, and specialties materials.
Clariant AG is a Swiss chemicals company headquartered in Muttenz, and is listed on the Swiss Exchange. It is active in the production and worldwide distribution of specialty chemicals. Clariant supplies its products to a variety of downstream sectors, including personal care, oil and mining, crop solutions and industrial applications.
Clariant Chemicals (India) Limited, the Indian arm of Clariant AG, last month reported profit before tax of Rs4.1 crore for the quarter ended June 2020, against a profit before tax of Rs10.5 crore for the quarter ended June 2019 – following a drop of 61 per cent caused by the impact of Covid-19 outbreak and subsequent continued nationwide lockdown. The company saw sales decline by 39 per cent to Rs128.9 crore for the quarter ended June 2020 against Rs209.8 crore for the corresponding quarter in the previous year.
The approval of the CCI is without prejudice to the proceedings under Section 43A of the Act.
CCI said it would come out with a detailed order later.