In what may be a sign that the masterbatch business is consolidating, Swiss speciality chemicals manufacturer Clariant (Muttenz; www.clariant.com) plans to acquire the activities of rival Ciba (Basel / Switzerland; www.cibasc.com). Neither selling price nor details of the deal set to close at the end of 2006 have been disclosed. The transaction is still subject to regulatory approval; however, this is not likely to be a problem, as the Ciba business with annual sales of CHF 80m (EUR 50m) is relatively small. According to CEO Jan Secher, the acquisition "perfectly fits Clariant´s strategy of expanding its number one market positions and driving growth in service-driven businesses."

Clariant claims to be world´s largest producer of masterbatches, with 2005 sales of CHF 1.1 bn (EUR 694m) and EBITDA of CHF 118m. For the first half of 2006 it reported sales of CHF 643m. In the past, the Swiss group has claimed to control around a fifth of the global market. Other leading players are Ampacet (www.ampacet.com) and Cabot (www.cabot-corp.com). Clariant´s US-based business incorporates products of former predecessors Sandoz and Hoechst.

The Ciba activities, with production facilities in France, Saudi Arabia and Malaysia, employs 300 people. After exiting the masterbatch sector, Ciba will concentrate on research, development, manufacturing and distribution of high performance additives and pigments for the plastics industry, said chairman and CEO Armin Meyer.