Clariant has named SABIC’s specialties executive vice president Ernesto Occhiello as CEO following the Saudi giant’s acquisition of a 24.99% stake in the Swiss company. The deal closed earlier this month making SABIC Clariant’s largest shareholder behind former shareholders of Süd-Chemie, acquired by Clariant in 2011.

Occhiello will take over from current CEO Hariolf Kottmann on Oct. 16. Kottmann, who has been Clariant’s CEO for 10 years, will become chairman of the board.

SABIC will also gain four seats on Clariant’s board and the proposed members – Abdullah Mohammed Alissa, Calum MacLean, Geoffery Merszei and Khaled Hamza Nahas – will be voted on at the extraordinary general meeting to be held on Oct. 16. Two current Clariant board members – Rudolf Wehrli and Peter Chen – will resign effective Oct. 16.

The changes are part of a joint governance agreement that both companies signed on Sept. 18. Clariant said the agreement determines the principles of its future governance, defines SABIC’s position as a strategic anchor shareholder and confirms its independence as a publicly listed company under Swiss corporate rules.

Just last week, the two companies signed a Memorandum of Understanding to create a new stand-alone High Performance Materials business within Clariant, combining SABIC’s specialties business with the Swiss group’s additives and high-end masterbatch portfolio.