Chemical companies Huntsman, Clariant announce $20B merger

May 22 (UPI) -- Rival chemical firms Huntsman Corp. and Clariant announced approval of a merger Monday to form a new $20 billion company.

The all-stock deal, in which Clariant stockholders would own 52 percent of the new company, to be called HuntsmanClariant, would create a trans-Atlantic giant in the chemical industry. Swiss-based Clariant and Texas-based Huntsman each manufacture polyurethanes, pigments, automotive fluids, additives and resins used in industries including aerospace, agriculture to household cleaning, the Wall Street Journal reported Monday. Collectively, they employ 32,000 people and sell their products in over 100 countries.

The merger of equals comes as chemical companies consolidate to eliminate overlapping operations and products. Synergies from the merger could reach $400 million annually, the companies said in a statement.

Hunstman stockholders will receive 1.2196 shares in the new company for each outstanding share; Clariant shares will be exchanged on a one-to-one basis.

The result will be a global chemical company with sales of $13.2 billion annually, with global headquarters in Pratteln, Switzerland, and operational headquarters in The Woodlands, Texas. Huntsman CEO Peter Huntsman will be CEO of the new company, with Clariant CEO Hariold Kottmann named chairman.