Swiss group Clariant on Monday said it planned to merge with US counterpart Huntsman to create a trans-Atlantic chemicals giant with a combined value of around $20 billion.
The all-stock transaction — which Clariant said would be a “merger of equals” — was agreed by the boards of both companies.
The combined entity would be called HuntsmanClariant, the Swiss group said in a statement.
Clariant CEO Hariolf Kottmann described the tie-up as “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”, he said.
On a pro-forma 2016 basis, the merged group would have combined sales of approximately $13.2 billion (11.8 billion euros) and underlying or operating profit of $2.3 billion.
“The combined entity will benefit from each other’s strengths. It will have a significantly improved growth profile in highly attractive end markets and geographies,” Clariant said.