On Monday, chemical manufacturing giants Huntsman and Clariant announced their plan to merge and create a new, larger manufacturing company with an estimated market value worth upwards of $14 billion. This would bring the aircraft de-icing fluids, pesticide ingredients, and plastic colorings of Muttenz, Switzerland-based Clariant together with the Woodland, Texas-based Huntsman’s paint, clothing, and construction chemicals.
With this deal underway, the newly combined company has also informed that the global headquarters will be based in Pratteln, Switzerland; there will also be an operational headquarters in Woodlands, TX. Attempting to keep the benefits equal for both companies, though, the two have agreed to keep Huntsman Chief Executive Peter Huntsman as CEO of the combined company with Clariant CEO Hariolf Kottman as chairman.
This is an important deal, of course, but especially for Clariant, which has been under some pressure lately as investors sought a merger partner that would ultimately help the brand to reduce costs and revive past growth numbers. Joining with such a large partner, too, would perpetuate more negotiation power to lower its supply costs.
Clariant CEO Hariolf Kottman comments, “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. This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him.”
In addition, Huntsman President Peter Huntsman notes: “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 specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility.”