Clariant: merger of equals with US rival Huntsman.

(CercleFinance.com) - Switzerland's Clariant and US rival Huntsman said they have agreed on a merger of equals to create a specialty chemical giant that has an enterprise value of approximately 20 billion dollars.


Under the terms of the all-stock deal, Huntsman shareholders will receive 1.2196 shares of the merged company - named HuntsmanClariant - for each share they own.

Each existing Clariant share will equate to a share in HuntsmanClariant.

After the deal's completion, Clariant shareholders will control 52% of the share capital of the new company, and Huntsman shareholders 48%.

"This is the perfect deal at the right time," said Hariolf Kottmann, Clariant's CEO.

The combined entity will benefit from each other's strengths, thanks to a significantly improved growth profile in highly attractive end markets and geographies, the companies said in a statement.

On a pro-forma 2016 basis, the merged group will create a leading global specialty chemical company with sales of approximately 13.2 billion dollars and adjusted EBITDA of 2.3 billion dollars.

The group's global headquarters will be located in Pratteln, Switzerland, while its operational headquarters will be based in The Woodlands, Texas.

HuntsmanClariant will keep a dual stock exchange direct listing on the SIX Swiss Exchange and the New York Stock Exchange.

The transaction is scheduled to be completed by the end of 2017.

Shares in Clariant were up by 6.8 percent at 22.3 Swiss francs.

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