Chemical groups Huntsman, Clariant announce merger

Industries Reuters

CEO Hariolf Kottmann (R) of Swiss chemical company Clariant sits beside Huntsman President and CEO Peter Huntsman as he addresses a news conference in Zurich, Switzerland May 22, 2017. REUTERS/Arnd Wiegmann

U.S.-based Huntsman and Switzerland's Clariant said on Monday they are combining to create a chemical manufacturer with a market value of more than $14 billion.

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The deal, which the companies called a "merger of equals," creates a global specialty chemical company with approximately $20 billion enterprise value, Clariant said in a statement.

The transaction, previously reported by Reuters, is targeted to close by the end of the year. The company will be named HuntsmanClariant.

The deal combines Clariant, a Muttenz, Switzerland-based maker of aircraft de-icing fluids, pesticide ingredients and plastic coloring, with Woodlands, Texas-based Huntsman, whose chemicals are used in paint, clothing and construction.

(Reporting by John Miller; Editing by Muralikumar Anantharaman)