The newly-formed HuntsmanClariant is described as “the perfect deal at the right time”
Specialty chemicals giants Clariant and Huntsman Corporation have merged to create a combined company with approximately $20bn enterprise value.
The newly formed company will be named HuntsmanClariant and is a merger of equals, with Clariant shareholders at 52% and Hunstman shareholders at 48%.
The deal will create annual cost synergies in excess of $400m, contributing to more than $3.5bn value creation.
Hariolf Kottmann, CEO of Clariant, will become Chairman of the Board of HuntsmanClariant.
He described the merger as “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,” he said. “This is in the best interest of all of our stakeholders.”
Meanwhile, Peter Huntsman, President and CEO of Huntsman, will become CEO of HuntsmanClariant.
He said: “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.”
Incorporated in Switzerland, the company will be governed by a Board of Directors, equally representing both Clariant and Huntsman.
While the global headquarters will be located in Pratteln, Switzerland, operational headquarters will run from The Woodlands, Texas.
In the announcement, the companies confirmed that the previously-announced IPO of Huntsman’s Pigments and Additives business, Venator, is still on track for the summer.
The deal is due to close by the end of this year.