The companies believe their combined entity will benefit from each other’s strengths, and have a significantly improved growth profile in highly attractive end markets and geographies. “This is the perfect deal at the right time,” says Hariolf Kottmann, CEO of Clariant. “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, says: “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.”

The combined company expects to realise more than $3.5bn of value creation from around $400m in annual cost synergies, realised by reducing operational costs and improving procurement. The combined company, incorporated in Switzerland, will be governed by a board of directors with equal representation from Clariant and Huntsman and will follow Swiss Corporate Governance standards.

Hariolf Kottmann will become chairman, with Peter Huntsman as CEO. Jon Huntsman, founder and chairman of Huntsman, will become chairman emeritus and a board member of HuntsmanClariant. The company will be listed on the SIX Swiss Exchange and the New York Stock Exchange.

Source: WTiNcomment