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Bloomberg
Clariant AG agreed to buy Huntsman Corp. in an all-stock deal valuing the US company at about $6.4 billion, extending a record run in transactions in the global chemicals industry.
Huntsman holders will get 1.2196 shares in the new company, to be called HuntsmanClariant, for each share they own, with Clariant emerging with a 52 percent stake, the two companies said in a statement on Monday. The combination is expected to generate more than $400 million in annual cost savings, leading to $3.5 billion in value creation, they said.
Clariant shares surged as much as 10 percent amid speculation the transatlantic deal could spark a counterbid for the Swiss company. The chances another offer for Clariant emerges are “high,†given it’s the No. 1 target in the sector, a Baader Helvea analyst said in a note, adding that the planned combination with Huntsman comes across as a defensive move.
An agreement between Huntsman and Clariant adds to an already historic level of deals in the industry as CEOs seek to bolster tepid sales growth. Global chemical companies have more than $300 billion in M&A planned, according to a report by AT Kearney published in March. That level is more than twice the previous all-time high set at the end of 2015, according to the management consulting firm.
“We never felt or saw ourselves as a takeover candidate,†Hariolf Kottmann said on the call.