0759 GMT - Clariant could face a negative share-price reaction in the wake of German chemical giant BASF's $1.43 billion claim over the Swiss chemicals company's alleged role in an ethylene purchasing cartel, Citi analyst Ranulf Orr says in a note. Clariant could shed 10% of its market capitalization if the claim is successful, he says. The European Commission fined Clariant in July 2020 alongside Celanese, Orbia and Westlake. Shell also filed a similar claim in 2023. "The burden is on BASF (and Shell) to prove the damages, which given the four's small volume in global ethylene purchasing may be challenging," the analyst says. The resolution is likely to take years, and if the claim goes through and is split equally across the four companies, could lead to paying 10% of its market cap, he says. (helena.smolak@wsj.com)

(END) Dow Jones Newswires

January 14, 2025 02:59 ET (07:59 GMT)

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