Clariant and Huntsman Abandon Planned Merger
Clariant International Ltd. and the Huntsman Corporation abort their planned merger of equals by mutual agreement. The Board of Directors of Clariant and Huntsman unanimously approved the decision. The termination agreement foresees no cancellation payment for either side.
The companies emphasized that the merger of equals agreed on May 21, 2017, would have been in the long-term best interests of shareholders. At the same time, in the view of Clariant, the approval of a two-thirds majority of Clariant shareholders, which would be required to approve the transaction under Swiss law, is too uncertain. The background, according to the company, is the continued buyout of investor White Tale Holdings, which has recently increased its stake in Clariant to over 20%, and its opposition to the transaction, which is now supported by some other shareholders.
Concentration on Respective Independent Strategy
In a joint statement, Peter R. Huntsman, President and CEO of Huntsman, and Hariolf Kottmann, CEO of Clariant, stated: "Under these circumstances and in light of the high level of disruption and uncertainty that has been created for both companies, we have jointly decided to terminate the merger agreement. This will allow both companies to focus again fully on their respective stand-alone strategies in the best interests of the companies and their shareholders, associates, and other stakeholders. We maintain a great respect for one another, and we want to recognize and express our mutual and deep appreciation for the efforts and incredible commitment demonstrated by the associates of each company over the past several months."
Following a thorough analysis of all strategic alternatives, Clariant’s Board of Directors and Executive Committee unanimously considered the merger with Huntsman to be the best available option to further develop the company and increase the long-term value for all stakeholders. This view has been and is shared by the vast majority of our shareholders. Rudolf Wehrli, Chairman of the Board of Directors: “We regret the missed opportunity for value creation and thank our shareholders for their support. The Board of Directors, our Chief Executive Officer and our Executive Committee will now focus on our proven strategy to further strengthen the company’s market position as a globally leading specialty chemicals company.”
Clariant International Ltd.
Huntsman Corporation Corporate Office
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