Sector News

US Huntsman, Swiss Clariant abandon plans to merge

October 27, 2017
Energy & Chemical Value Chain

US’ Huntsman and Switzerland’s Clariant have jointly abandoned plans to merge, the specialty chemical companies said on Friday.

The termination of the deal was for the best interest of all stakeholders, the companies said, adding that there will be no payment of a deal breakage fee.

“Execution of merger at risk due to increased uncertainty of securing two-thirds majority by Clariant shareholders,” the Swiss producer said, as its activist investor White Tale Holdings has raised its stake in Clariant to more than 20%.

Hunstman CEO Peter Huntsman said: “Under these circumstances and in light of the high level of disruption and uncertainty that has been created for both companies, we have decided jointly to terminate the merger agreement, stop the substantial expenditure of funds associated with integration planning, and proceed along our independent paths in the best interests of both companies and their shareholders, associates, and other stakeholders.”

Clariant CEO Hariolf Kottmann said that “while White Tale’s position on the merger has been different from ours”, we share a common interest in increasing Clariant’s value”, adding that the company is committed to achieving the goal “through a continuation of our existing and successful long-term growth strategy”.

Dubbed merger of equals, the deal announced in May between Hunstman and Clariant was to be an all-stock transaction.

“We regret the missed opportunity for value creation and thank our shareholders for their support,” Clariant chairman Rudolf Wehrli said.

By Pearl Bantillo

Source: ICIS News

comments closed

Related News

March 24, 2024

Thomas Gangl leaves Borealis

Energy & Chemical Value Chain

Appointed Borealis CEO in 2021, Thomas has led key initiatives including the sale of the nitrogen business, acquisitions of Rialti Spa and Integra Plastics AD, and Borouge’s IPO. He also made the final investment decision for the Borouge 4 plant, set to be the world’s largest polyolefin complex.

March 24, 2024

Chemours names Dignam permanent CEO

Energy & Chemical Value Chain

The Chemours Co. today named interim CEO Denise Dignam as the company’s permanent CEO and president, as well as a member of the board of directors, effective immediately. Dignam has been interim CEO since late February, when former CEO Mark Newman was placed on leave due to an internal investigation.

March 24, 2024

Neste merges three business lines into new Renewable Products unit

Energy & Chemical Value Chain

Neste Corp. (Espoo, Finland) has completed its organizational change process, announced on 1 November 2023. Neste informed that it will merge its three renewable business units into one Renewable Products business unit as well as restructure its functions to better support business-driven ways of working.

How can we help you?

We're easy to reach