Saudi Basic Industries Corp (SABIC), the world’s third largest diversified petrochemicals company, announced Tuesday that it is taking steps to establish certain elements of its Specialties business as a stand-alone business, reported the Saudi Press Agency. The two sides signed a Memorandum of Understanding (MoU) on Tuesday that would enable Clariant to create a new, “High Performance Materials” specialty chemicals business as an exceptional global platform for growth. The process to create SABIC’s stand-alone Specialties business is anticipated to be complete by the end of 2019. SABIC Vice Chairman and CEO Yousef Al-Benyan said: “The establishment of SABIC Specialties as a stand-alone business, together with the MoU with Clariant, represent part of SABICs long-term growth and diversification strategy.” “SABIC has a long and strong track record of growing businesses through joint ventures and co-investment in both listed and private companies. Uncoupling the Specialties business will allow the unit to achieve accelerated organic and inorganic growth as aligned with our broader corporate strategy of creating a sizable, world class Specialties company while creating additional value for our shareholders, customers and talented employees.” He continued: “For many years, SABIC and Clariant have created value for our respective shareholders from our close commercial ties. We will now seek to further develop this strategic relationship at the highest levels of both companies to create a leading provider of tailored specialty materials and technologies for the benefit of both companies’ stakeholders and the advancement of the specialties industry.” This announcement follows the recent regulatory approvals of SABIC’s acquisition of its 24.99 percent interest in Clariant, making SABIC the Swiss specialty chemicals company’s largest shareholder. SABIC currently has no plans to launch or otherwise effect a full takeover of Clariant AG.