Hunts­man and Clari­ant mu­tu­ally agree to aban­don planned merger of equals

Chemical Industry Digest - - News & Views -

Hunts­man Cor­po­ra­tion and Clari­ant jointly an­nounced that they have ter­mi­nated their pro­posed merger of equals by mu­tual agree­ment. The de­ci­sion was unan­i­mously ap­proved by the Boards of Di­rec­tors of Hunts­man and Clari­ant. No fees are cur­rently payable un­der the terms of the Ter­mi­na­tion Agree­ment.

In a joint state­ment, Peter R. Hunts­man, Pres­i­dent and CEO of Hunts­man, and Har­i­olf Kottmann, CEO of Clari­ant, stated: “While we re­main con­vinced that the pro­posed merger of equals as agreed to on May 21, 2017, is in the long term best in­ter­ests of all of our share­hold­ers, given the con­tin­ued ac­cu­mu­la­tion of shares by ac­tivist in­vestor White Tale Hold­ings and their op­po­si­tion to the trans­ac­tion, now sup­ported by some other share­hold­ers, we 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 and in light of the high level of dis­rup­tion and un­cer­tainty that has been cre­ated for both com­pa­nies, we have de­cided jointly to ter­mi­nate the merger agree­ment, stop the sub­stan­tial ex­pen­di­ture of funds as­so­ci­ated with in­te­gra­tion plan­ning, and pro­ceed along our in­de­pen­dent paths in the best in­ter­ests of both com­pa­nies and their share­hold­ers, as­so­ci­ates, and other stake­hold­ers. We, of course, re­main com­peti­tors but main­tain a great re­spect for one another, and we want to rec­og­nize and ex­press our mu­tual and deep ap­pre­ci­a­tion for the ef­forts and in­cred­i­ble com­mit­ment demon­strated by the as­so­ci­ates of each com­pany over the past sev­eral months.”

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