Clariant ending governance deal with SABIC stirs takeover talk | Reuters

Clariant ending governance deal with SABIC stirs takeover talk | Reuters

Clariant (CLN.S) and its main shareholder Saudi Basic Industries Corp (2010.SE) are to end a so-called "governance agreement" defining their relationship, stirring speculation SABIC could launch a full takeover bid for the Swiss chemicals firm.

Clariant shares jumped 8.4% to become the top performer on Europe's main STOXX index (.STOXX) after the announcement on Tuesday, which fuelled rumours in Swiss media surrounding Clariant and SABIC ranging from a complete takeover by the Saudis to a sale of their Clariant stake.

The 2018 agreement guarantees SABIC's position as a strategic anchor shareholder and confirmed Clariant's independence as a publicly listed company under Swiss corporate governance.

But after the agreement lapses on June 22, Clariant and SABIC will no longer form a group regarding the attribution of voting rights, Clariant said.

Clairant Chairman Guenther von Au said he thought SABIC would continue to support Clariant in future. "We are confident on SABIC's support in the spirit built over the years," he said in a statement.