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BRIEF-Huntsman and Clariant to combine in merger of equals
May 22, 2017 / 5:20 AM / 7 months ago

BRIEF-Huntsman and Clariant to combine in merger of equals

May 22 (Reuters) - Clariant Ag :

* Huntsman and Clariant to combine in merger of equals

* Merger of equals to create a global specialty chemical company with approximately $20 billion enterprise value at announcement

* Transaction targeted to close by year end 2017

* All-Stock merger of equals transaction, Clariant shareholders: 52%, Huntsman shareholders: 48%

* Merged company will be named HuntsmanClariant

* Says previously announced IPO of Huntsman’s pigments and additives business (Venator) to continue as planned in summer 2017

* Combined company expects to realize more than $3.5 billion of value creation from approximately $400 million in annual cost synergies

* Says targeted synergies represent roughly 3 percent of total combined 2016 revenue with one-time costs up to $500 million

* Combined co, incorporated in switzerland, to be governed by a board of directors with equal representation from clariant and huntsman

* Hariolf Kottmann, current Clariant CEO, shall become chairman of board of HuntsmanClariant

* Peter Huntsman, current Huntsman president and CEO, will become CEO of HuntsmanClariant

* Jon Huntsman, founder and chairman of Huntsman, shall become chairman emeritus and board member of HuntsmanClariant

* Citi & UBS AG serving as Clariant’s financial advisors for deal, Homburger and Cleary Gottlieb Steen and Hamilton serving as legal advisors

* HuntsmanClariant will be listed on Six Swiss Exchange and New York Stock Exchange

* BofA Merrill Lynch and Moelis & Company Llc serving as Huntsman’s financial advisors for deal

* Kirkland & Ellis, Bär & Karrer and Vinson & Elkins acting as Huntsman’s legal advisors for deal Source text for Eikon: Further company coverage:

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