ZURICH, July 25 (Reuters) - Clariant and large shareholder Saudi Basic Industries have halted negotiations to form a new high performance materials company from the combined assets of the two companies, Clariant said on Thursday.
SABIC, which holds 25% of Clariant, and the Swiss company have been working to combine Clariant's additives and specialty masterbatches businesses with parts of SABIC's specialty chemicals operation.
Clariant, whose Chief Executive Ernesto Occhiello left abruptly this week said the companies have decided to temporarily suspend negotiations.
"Given the current market conditions, both parties have decided that temporarily suspending the negotiations is in the best interests of the respective shareholders of both companies," Clariant said. (Reporting by John Revill)