Switzerland Clariant will merge with Huntsman. Market value of 20 billion US dollars

On May 22nd, Swiss chemical firm Clariant and Huntsman announced that its board of directors unanimously approved an equal all-stock merger agreement. The transaction is expected to be completed by the end of 2017.

The merged company will be named HuntsmanClariant. According to the 2016 financial data, the merger of the two companies will create a leading global specialty chemicals company with sales of approximately $ 13.2 billion and adjusted EBITDA to $ 2.3 billion with a market value of about $ 20 billion.

The combined entity will benefit from both sides’ advantages, will share the intellectual property and have a more powerful joint innovation platform. The annual cost synergies are about $ 400 million.

Based on the current market value of the two companies, Clariant shareholders hold approximately 52% of the shares of the new entity and Huntsman shareholders hold the remaining shares. Headquartered in Pratteln, Switzerland, the company is headquartered in Woodlands, Texas, USA, and will be listed directly on the Swiss exchange and the New York Stock Exchange.

The new company Main polyurethane, pigments, automotive liquids, additives and resins and a series of chemical products, involving aerospace, agriculture and household cleaning and other industries.

Results show that Clariant first quarter sales of 1.602 billion Swiss francs, higher than the same period last year 1.478 billion Swiss francs, an increase of 9%. Huntsman’s first quarter operating income of 2.469 billion US dollars, net profit of 92 million US dollars, adjusted EBITDA profit of $ 329 million.