Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Saudi tensions could hit Swiss chemicals group Clariant: CEO

Published 10/16/2018, 05:01 AM
Updated 10/16/2018, 05:10 AM
© Reuters. FILE PHOTO: Woman stands next to logo of Swiss specialty chemicals company Clariant ahead of a news conference to present full-year results in Zurich

© Reuters. FILE PHOTO: Woman stands next to logo of Swiss specialty chemicals company Clariant ahead of a news conference to present full-year results in Zurich

By John Revill

BASEL, Switzerland (Reuters) - The new chief executive of Clariant (S:CLN), which has Saudi Basic Industries Corp (SABIC) (SE:2010) as its anchor shareholder, said rising tensions surrounding the disappearance of a Saudi Arabian journalist could hit the Swiss speciality chemicals maker and its rivals.

"If there is a major trade disruption involving Saudi Arabia, Clariant will be affected and many others I may say even possibly more than Clariant will be affected," Ernesto Occhiello told reporters on Tuesday.

"If there is no trade disruption the competitive scenario will remain untouched. We will see," said Occhiello, who was head of specialities at SABIC before taking charge at Clariant on Tuesday.

"I wouldn't consider the fact that Saudi Arabia is going through a lively few days in the media as having an impact on the ability of Clariant to compete with other parties."

Saudi Arabia's riyal rebounded against the U.S. dollar after CNN reported Riyadh was preparing to acknowledge the death of dissident journalist Jamal Khashoggi in a botched interrogation.

Clariant and 24.99 percent shareholder SABIC are merging their high-performance materials businesses, a move that will include the sale of some plastics and coatings activities.

Occhiello is replacing Hariolf Kottmann, who is standing for election as chairman at an extraordinary general meeting on Tuesday at which the Saudi company has proposed four new directors to be elected to the 12-strong board.

© Reuters. FILE PHOTO: Woman stands next to logo of Swiss specialty chemicals company Clariant ahead of a news conference to present full-year results in Zurich

Kottmann said SABIC could increase its stake, but had no plans to launch a full takeover of Clariant. "Officially SABIC three weeks ago announced they have no intention to go up to 100 percent and make a takeover," Kottmann said. "Nothing has changed."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.