Swiss and US chemical manufacturers Clariant and Huntsman have agreed to a $20bn (£15bn) merger.
The new company, HuntsmanClariant, will be 52 per cent owned by Clariant’s shareholders, the companies announced today.
Clariant’s products include Glucopure, a dish cleaner, and Tonsil, which is used to remove “undesired substances and impurities in edible oils”. Huntsman has products in areas from agrochemicals to beauty and personal care.
The merged entity, which will have an enterprise value of $20bn and a market value of more than $14bn, will be dual listed on Clariant’s SIX Swiss Exchange and Huntsman’s New York Stock Exchange. The board of directors will have equal representation from both existing firms.
The companies have also revealed it will have a global headquarters in Pratteln, Switzerland, and an operational headquarters in the Woodlands, Texas.
Clariant chief executive Hariolf Kottmann said: “This is the perfect deal at the right time. Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities.”
Huntsman president and chief executive Peter Huntsman said: “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 global leader in speciality chemicals with a combined balance sheet providing substantial financial strength and flexibility.”
There has been a flurry of mergers and acquisitions (M&A) activity in the global chemicals industry in recent years. Dutch paints maker AkzoNobel is currently holding off an approach from US firm PPG Industries; Germany’s Bayer agreed a $66bn takeover deal for US seeds firm Monsanto last year; and ChemChina’s $43bn takeover of Switzerland’s Syngenta is expected to complete in the coming months.