Clariant to buy Sud-Chemie


Swiss-based chemical giant Clariant is set to buy German competitor Süd-Chemie after announcing strong growth in 2010.

Aerial view of Clariant Switzerland

Clariant's Swiss HQ Courtesy of Clariant

Clariant, whose businesses include provision of specialist chemicals to the oil and mining industry from its Texas-based business unit, is close to sealing a  $2.6bn deal to take full ownership of the German specialist chemical manufacturer.

The acquisition comes at the end of a two-year resucture by Clariant which has included a significant financial improvement, showing 8% sales growth for 2010 at $7.6bn, with net income for they year of $204m, substantially ahead of analyst's estimates.

Süd-Chemie's own predicted figures for 2010 are set to show adjusted earnings of $131m on $1.7bn sales, split between its adsorbents and catalysts divisions.

Taking on the Süd-Chemie business will add a wide range of speciality chemicals, including olefin production, to Clariant's portfolio as well as increasing its R & D capacity and give Clariant a total of 12 business units.