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Huntsman and Clariant to have merger of equals
25
May '17
Huntsman Corporation and Clariant have announced that their boards of directors unanimously approved a definitive agreement to combine in a merger of equals through an all-stock transaction. The merged company will be named HuntsmanClariant and will benefit from each other's strengths. The transaction is targeted to close by year end 2017.

The combined entity will have a significantly improved growth profile in highly attractive end markets and geographies. HuntsmanClariant will leverage shared knowledge in sustainability and boast a much stronger joint innovation platform. This will enable the development of new products in order to deliver superior returns and drive shareholder value.

The transaction is targeted to close by year end 2017, subject to Clariant and Huntsman shareholder approvals, regulatory approvals and other customary closing conditions. Clariant and Huntsman are confident that the required regulatory approvals can be obtained in a timely manner.

"This is the perfect deal 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. This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him," said Hariolf Kottmann, CEO of Clariant.

Peter R Huntsman, president and CEO of Huntsman, commented: "I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade. We also look forward to a close association with his immensely talented colleagues around the world. Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility."

Huntsman shareholders receive 1.2196 shares in HuntsmanClariant for each Huntsman share. Each existing Clariant share will remain outstanding as a share in HuntsmanClariant.

The board of directors of the new company, which will have global headquarters in Pratteln, Switzerland, and operational headquarters in the Woodlands, Texas, will have equal representation from Clariant and Huntsman. The company will follow Swiss corporate governance standards. Hariolf Kottmann, current Clariant CEO, shall become chairman of the board of HuntsmanClariant. Peter Huntsman, current Huntsman president and CEO, will become CEO of HuntsmanClariant.

The new company will accelerate value creation for shareholders through a more robust combination of technology, products and talent. The combined company expects to realise more than $3.5 billion of value creation from approximately $400 million in annual cost synergies. The full synergy run-rate is likely to be achieved within two years of closing. These synergies will be realised by reducing operational costs and improving procurement. The targeted synergies represent roughly three per cent of total combined 2016 revenue with one-time costs up to $500 million. There will also be additional cash-tax savings. (SV)

Fibre2Fashion News Desk – India


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