Huntsman, Clariant to Merge, Forming $14B Chemical Firm

The boards of chemical firms Huntsman Corporation and Clariant voted unanimously to approve a merger agreement that could create a new chemical player valued at about $14 billion, the companies announced by press release Monday.

“This is the perfect deal at the right time. Clarient and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities,” Hariolf Kottmann, chief executive officer of Clariant, said in a statement.

Operating under the name HuntsmanClarient, the merged firm plans to collectively develop new products and foster growth in strategic end markets.

“I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade. We also look forward to a close association with his immensely talented colleagues around the world. Together, we will create a leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility,” President and Chief Executive Officer of Huntsman, Peter R. Huntsman, said in a release.

The companies said they expect synergies of the deal to be realized in two years through cutting operational costs and making improvements in procurement.

Huntsman and Clariant expect the transaction to close by the end of 2017, pending regulatory approvals and other closing conditions.

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