Clariant and Huntsman Corporation jointly announced that they have mutually terminated their proposed merger of equals. The decision was unanimously approved by the Boards of Directors of both companies.
Muttenz/Switzerland — In a joint statement, Peter R. Huntsman, President and CEO of Huntsman, and Hariolf Kottmann, CEO of Clariant, stated that they remain convinced that the proposed merger of equals as agreed to on May 21, 2017, would have been in the long-term best interests of all of our shareholders. However, given the continued accumulation of Clariant shares by investor White Tale Holdings and its opposition to the transaction, which is now supported by some other shareholders, they believe that there is simply too much uncertainty as to whether Clariant will be able to secure the two-thirds shareholder approval that is required to approve the transaction under Swiss law.
Under these circumstances the companies have jointly decided to terminate the merger agreement. The Termination Agreement foresees no payment of a break fee on either side.
Previously, Clariant's Board of Directors and Executive Committee unanimously considered the merger with Huntsman to be the best available option to further develop the company and increase the long-term value for all stakeholders. Rudolf Wehrli, Chairman of the Board of Directors: "We regret the missed opportunity for value creation and thank our shareholders for their support. The Board of Directors, our Chief Executive Officer and our Executive Committee will now focus on our proven strategy to further strengthen the company's market position as a globally leading specialty chemicals company."