Shares of Croda International Plc surged 4.7% on Thursday, marking the British chemicals supplier’s strongest daily gain since April 23.
The rally came after a filing revealed that Standard Latitude Master Fund Ltd., an investment vehicle of Standard Industries, had accumulated more than 5% of Croda’s voting rights.
The filing showed that Standard Latitude holds 2.54% of Croda’s voting rights attached to shares, and a further 2.94% through financial instruments.
The disclosure propelled Croda into the spotlight after a challenging year in which the company’s stock has fallen more than 30%.
Despite the recent rally, Croda continues to trade well below past levels, reflecting broader concerns around the chemicals sector, cost pressures, and global demand trends.
The new stake, however, may raise expectations of potential strategic interest or investor influence, given Standard Industries’ history of activism in specialty chemicals.
Standard Industries’ track Record in Specialty Chemicals
Standard Industries, a privately held US-based industrial conglomerate, has built a reputation for pursuing significant positions in specialty chemical firms.
In 2022, the company disclosed a stake in Johnson Matthey Plc and later pushed the British chemical and sustainable technologies firm to undertake a strategic review.
That process culminated in Johnson Matthey’s decision to sell its catalyst business to Honeywell International Inc. for $2.4 billion, a transaction that reshaped its operations.
Investors may see parallels in the Croda disclosure, even though no strategic intentions have been announced.
Croda, which supplies specialty compounds to high-profile clients including cosmetics group Estée Lauder Cos. and pharmaceuticals company Sanofi SA, remains an important player in the chemicals value chain.
The firm’s exposure to both consumer-facing and industrial segments has historically made it attractive to long-term investors seeking stability and growth opportunities.
Eighth-largest shareholder position
According to data compiled by Bloomberg, Standard Latitude now ranks as Croda’s eighth-largest shareholder.
The position, while not controlling, gives Standard Industries a significant voice in shareholder discussions and potential influence over governance or strategic decisions.
The market reaction suggests investors view the involvement of Standard Industries as potentially positive, given its established role in driving portfolio company reviews and industry consolidation.
Still, Croda’s management and Standard Industries have not publicly commented beyond the disclosure filing.
The chemicals industry has faced a mixed backdrop in recent months, with shifting demand dynamics, higher input costs, and tighter financial conditions challenging profitability.
Croda in its H1 2025 results reported a an adjusted profit before tax of £138 million, which slightly exceeded the consensus forecast of £137 million.
For the second quarter, Croda reported group sales of £414 million.
This figure aligned with Jefferies’ forecast and came in just under the consensus projection of £415 million.
The sales performance represents a 6% year-over-year growth at constant currency rates.
For Croda, the entry of an active shareholder could reinforce focus on value creation and capital allocation priorities, particularly after a period of stock underperformance.
Whether Standard Industries intends to replicate its Johnson Matthey playbook remains to be seen, but its presence is likely to keep investor attention firmly on Croda’s strategic direction in the months ahead.
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