By John Revill
ZURICH -Clariant and its largest shareholder Saudi Basic Industries Corporation (SABIC) are to end their so-called 'governance agreement", following the Swiss chemical company's upcoming annual general meeting.
The two sides will no longer form a group regarding the attribution of voting rights, Clariant said on Tuesday.
The agreement was signed in September 2018, shortly after SABIC bought a 24.99% stake in Clariant. It now holds a 31.5% stake, according to Refinitiv data.
It defined SABIC's position as a strategic anchor shareholder and confirmed Clariant's independence as a publicly-listed company under Swiss corporate governance.
There have been rumours in Swiss media surrounding Clariant and SABIC, ranging from a complete takeover by the Saudis to a sale of their Clariant stake.
"The board will continue to drive Clariant's purpose-led strategy together with the Executive Management Team, with a focus on customer, innovation, sustainability, and people to deliver our 2025 profitable growth targets," Chairman Guenther von Au said in a statement.
"We are confident on SABIC's support in the spirit built over the years."
Separately, Clariant also said it would publish its delayed fourth-quarter earnings report on May 19.
The report was delayed following allegations from a whistleblower that some staff had manipulated accounts in 2020 and 2021 to help meet financial targets.
The company found no impact on sales and cash previously reported following the conclusion of its inquiry last month.