CCI Approves SABIC’s Incremental Stake Acquisition in Clariant AG
The Competition Commission of India (CCI) has approved for the incremental acquisition of 6.51% shareholding by SABIC International Holdings B.V (SABIC BV) in Clariant AG under Section 31(1) of the Competition Act, 2002, on 2nd September 2020.
SABIC is a registered joint-stock company on the Saudi Stock Exchange and it has its operations in more than 50 countries. It is well-known by the Royal Decree of the Kingdom of Saudi Arabia. SABIC BV is the supporting arm of SABIC’s international operations together with its investments in the specialty sector. SABIC is active in four product sections that are petrochemicals, Agri-nutrients, metals, and specialties materials.
The Clariant AG is a Swiss chemical company, which is headquartered in Muttenz and is enumerated on the Swiss Exchange. It is vigorous towards the production and worldwide distribution of specialty chemicals. Clariant’s products are supplied to a variety of downstream sectors that includes crop solutions, personal care, oil and mining, and industrial applications.
Clariant Chemicals (India) Limited, it is an Indian arm of Clariant AG, the profit was reported i.e., a profit before tax of Rs 4.1 crore for the quarter ended June 2020, against a profit before tax of Rs 10.5 crore for the quarter ended June 2019 – the company had faced a sales decline by 39 percent to Rs 128.9 crore for the quarter ended June 2020 against Rs 209.8 crore for the corresponding quarter in the previous year. A 60 percent drop was being caused by the impact of the Covid-19 outbreak.
The authorization of the CCI is without prejudice to the proceedings that are under section 43A of the Act.