Clariant Innovation Centre main entrance. Credit: © Clariant.
Clariant has been seeking support from the Deutsche Bank to find a suitable buyer for its pigments business, reported Reuters citing unnamed sources.
The business is estimated to value nearly $821m.
Clariant is expected to send information packages on the sale by the end of this quarter, the news agency added. Clariant pigments business plastics coatings
In the last few years, the pigments industry was subjected to intense competition with Asian firms representing a large percentage of the market share.
Around four years ago, Clariant began segregating its plastics and coatings business for divestment. As part of the move, it transferred products such as plastic colourings, additives and pigments into a separate subsidiary.
Chemical company BASF has already separated its pigments unit from core businesses. However, sources say it is not expected to acquire Clariant’s unit.
In 2017, Clariant announced a merger with Huntsman but this did not materialise. Last year, Saudi Arabia’s Saudi Basic Industries acquired a 25% stake in Clariant.
Clariant’s organisational structure comprises seven business units, including additives, catalysts, functional minerals, industrial and consumer specialities, masterbatches and oil and mining services.
In November last year, Clariant partnered with sustainable diesel and renewable chemical solutions provider Neste. It will use Neste’s renewable hydrocarbons to support its portfolio of products that are derived from renewable raw materials.