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Clifford Chance advising SABIC on proposed acquisition of strategic stake in Clariant from 40 North and Corvex

29 January 2018

Clifford Chance advising SABIC on proposed acquisition of strategic stake in Clariant from 40 North and Corvex

Clifford Chance is advising SABIC, a world leader in chemicals, on its proposed acquisition of approximately 83 million shares in global chemicals company Clariant from 40 North and Corvex Management. The acquisition would make SABIC the largest Clariant shareholder. SABIC currently has no plans to launch a full takeover of Clariant.

The deal marks another step towards SABIC's plans to become a global leader in chemicals, offering product differentiation and value to customers. SABIC is 70% owned by the Saudi Arabian sovereign wealth fund, Public Investment Fund (PIF).

Mohammed Al-Shukairy, M&A partner leading the team at Clifford Chance, commented: "We are of course pleased for SABIC to have reached agreement to acquire 24.9% in Clariant, in what will no doubt prove to be a highly strategic and successful move for SABIC. The transaction required our market leading M&A, anti-trust, securities and finance teams from across a number of offices including Dubai, New York, Brussels, Amsterdam, Frankfurt and Düsseldorf, to work very closely with SABIC to get to signing in very short order. We look forward to continuing to leverage our resources, sector know-how and public company M&A expertise to assist SABIC move expeditiously to closing.

Edmund Boyo, one of the SABIC relationship partners, commented: "As a firm we are absolutely delighted to have acted on all of SABIC's landmark international acquisition and/or acquisition finance  transactions over the last two decades including in relation to the acquisition of DSM's petrochemicals business, GE Plastics, and most recently, a 24.9% stake in Clariant, each transaction representing a key milestone in SABIC’s growth and diversification strategy to become the preferred world leader in chemicals."  

The global Clifford Chance team included partners Mohammed Al-Shukairy (Dubai), Edmund Boyo (Dubai), Daniel Winick (New York), Thomas Krecek (Frankfurt), Marc Besen (Dusseldorf), Tony Reeves (Brussels), Jeroen Thijssen (Amsterdam) and Jelle Hofland (Amsterdam). Counsel team members were Andrew Steele (Dubai), Jim Back (Brussels), Dimitri Slobodenjuk (Düsseldorf) and Heleen Engelen (Brussels).  AS&H are acting as Saudi law counsel and Lenz & Staehelin are acting as Swiss law counsel to SABIC.