Giant chemical companies Clariant and Huntsman Corporation, which produced materials used in textile production, have recently presented a first update on the planned merger of equals they announced in May 2017.
The preparations to create the newly named HuntsmanClariant global specialty chemicals company are progressing and are proceeding as planned to close between December 2017 and January 2018.
The combination of both companies will create a leading global specialty chemical company with sales of approximately US$13.2 billion, an adjusted EBITDA of US$2.3 billion and a combined enterprise value of approximately US$20 billion at announcement. The operation is expected to cut US$400 million excess costs and about US$25 million in taxes.
The combined entity will benefit from its parts’ strengths. It will have a significantly improved growth profile in highly attractive end markets and geographies. HuntsmanClariant will leverage shared knowledge in sustainability and boast a much stronger joint innovation platform. This will enable the development of new products to deliver superior returns and drive shareholder value.
The two groups’ portfolio will be simplified and complexity reduced while utilizing strategic flexibility to consider value creating add-on acquisitions and divestments. Plastics & Coatings and Textile Effects will be managed for cash and turnaround while all other businesses will be managed for growth and margins.