Yesterday, Clariant has announced its intention to vigorously defend itself against a €1.4 billion ($1.4 billion) damages claim from BASF (BASFn.DE) related to alleged antitrust violations in the ethylene market. The lawsuit, filed by BASF in a Munich court, stems from a 2020 European Commission ruling, which imposed fines on Clariant, Mexico’s Orbia (ORBIA.MX), and U.S. chemical giant Celanese (CE.N) for colluding to suppress ethylene purchase prices, in violation of EU competition laws.
It is reported that ethylene ingredients are widely used in cosmetics, where they primarily function as emollients and thickeners in both cosmetics and skincare products.
The Commission had fined the three companies a total of €260 million for their involvement in a price-fixing cartel that operated before 2020. At the time, Westlake (WLK.N) was also implicated but was spared a penalty after it blew the whistle on the cartel’s activities. However, Clariant firmly disputes BASF’s claims, asserting that its actions did not have any tangible impact on the market, and the company is prepared to contest the lawsuit in full.
BASF’s claim, filed on January 9, 2025, targets the four companies involved in the case. Clariant has indicated that, should the court proceed with the damages claim, any potential compensation would need to be addressed separately with a final ruling on liability. While Clariant’s legal team rejects the allegations, shares in the Swiss chemicals group fell by 1.5% as of midday trading on January 16.
The 2020 European Commission decision had seen the companies acknowledge their participation in the cartel, but Clariant has emphasized that it remains committed to defending its position throughout the ongoing legal proceedings.
