Sector News

US Huntsman, Swiss Clariant abandon plans to merge

October 27, 2017
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

June 24, 2022

BASF to build commercial scale battery recycling black mass plant in Schwarzheide, Germany

Chemical Value Chain

BASF will build a commercial scale battery recycling black mass plant in Schwarzheide, Germany. This investment strengthens BASF’s cathode active materials (CAM) production and recycling hub in Schwarzheide. The site is an ideal location for the build-up of battery recycling activities given the presence of many EV car manufacturers and cell producers in Central Europe.

June 24, 2022

Clariant restructures business units, reorganizes leadership

Chemical Value Chain

Clariant says it is reducing its number of businesses from five to three, by merging units, under a reorganization that is in line with the company’s purpose-led strategy and cultural transformation. The moves will position Clariant for long-term sustainable growth, the company says.

June 24, 2022

Chemicals & Plastics Procurement: what to expect in the second half of 2022

Chemical Value Chain

Chemicals & plastics industry has the most diversified end-use market across all manufacturing industries. The industry returned to growth in 2021 but a supply chain crunch prevented it from becoming stronger. The market is likely to stabilize in the second half of 2022 with a supply-demand balance.