According to a Clariant statement, the board of directors of the two companies unanimously approved a definitive agreement to combine in a merger of equals through an all-stock transaction. The transaction is targeted to close by the end of the year. Clariant shareholders will hold 52 per cent of the new company. HuntsmanClariant will be listed on both the SIX Swiss Exchange and the New York Stock Exchange.
The combined company expects to generate around USD 400 million in annual cost synergies. Clariant predicts annual sales of approximately USD 13.2 billion and a combined enterprise value of around USD 20 billion. The board of directors will have equal representation from the two companies.
Hariolf Kottman, current Clariant CEO and the new chairman of the board of HuntsmanClariant, spoke of the right merger at the right time: “Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities.”
Peter R. Huntsman, president and CEO of Huntsman, will be the CEO of the new company at its operational headquarters in The Woodlands, Texas. “Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility,” he said.