American chemical company Huntsman Materials and Swiss Clariant are close to a merger agreement. If the agreement is reached, a chemical giant worth about $ 14 billion will be created. The combined company will have a market value of about $ 20 billion and is expected to boost the new company Growth prospects.
Clariant is the world's leading specialty chemicals company, headquartered in Muttenz near Basel. As of December 31, 2016, it had approximately 17,442 employees. In FY2016, sales from continuing operations amounted to 5.847 billion Swiss francs. The company reports on four business areas: care chemicals, catalysts, natural resources, and plastics and coatings. Clariant's corporate strategy is based on five strategic pillars: supporting innovation and research and development, adding value through sustainable development, repositioning the product portfolio, strengthening growth and increasing profitability.
The Huntsman Group is a listed global manufacturer and seller of specialty chemicals with 2016 revenue of approximately $ 10 billion. The group produces a wide range of chemicals. Our products are widely used in various consumer and industrial markets, and our customers come from all over the world. Huntsman operates more than 100 production and R & D facilities in approximately 30 countries around the world, and its five business units (including the Pigment and Additives division, which is planned to be split into the Venator Materials Group) have approximately 15,000 employees.
According to people familiar with the matter, the two companies will benefit from the merger. In terms of attractive end markets and different geographical distribution, the combined companies will achieve significantly improved growth. Huntsman Clariant will leverage shared knowledge in sustainable development to have a stronger platform for joint innovation, which will help develop new products that provide superior returns and drive shareholder value.
Peter R. Huntsman, President and CEO of Huntsman, commented: "I can't be more optimistic about this merger and look forward to working closely with Hariolf Kottmann, who has been my admiration and trust for the past ten years We are also looking forward to working closely with his very talented colleagues around the world. We will jointly create a global leader in specialty chemicals and provide comprehensive balance sheets, providing great financial strength and flexibility. "
It is reported that the transaction is expected to be completed by the end of 2017, and Clariant and Huntsman are confident that they can obtain the required regulatory approval in a timely manner.