Clariant Ltd belongs to the Swiss value-added tax (VAT) group of Clariant, and thus carries joint liability to the Swiss federal tax authority for value-added tax.

In connection with the dismantlement of a waste-water treatment plant in France, Clariant is faced with a claim by the Swiss-based group Novartis in the amount of CHF 22 million. Clariant has the view that this claim is unfounded. The case is currently pending at court.

In 2017, the European Commission (Antitrust) initiated an investigation on Clariant and some of its competitors active in the ethylene purchasing sector in some member states. The investigation is at an early stage; should antitrust violations be brought up against Clariant by the European Commission, it can impose significant fines that may affect the Group’s, and thus of Clariant AG as the ultimate parent company’s result and cash flow with an amount that may be material.

Given the ongoing nature of the investigation and the uncertainties associated with them, management has concluded that the amount of such fine cannot be determined as of 31 December 2017 as a reliable estimate is dependent on numerous factors which have not been defined as of the closing date. This assessment is supported by external advisors.