Durability + Design
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

Paint BidTracker


D+D News

Main News Page


Investor Wants to Stop Huntsman, Clariant Merger

Friday, July 14, 2017

More items for Good Technical Practice

Comment | More

Investment firm 40 North (New York) and hedge fund Corvex, led by activist investor Keith Meister, have recently acquired 23.9 million shares (or 7.2 percent) of Clariant and are actively trying to push the Swiss chemical company into exploring alternatives to the already agreed upon merger with Huntsman International LLC (The Woodlands, Texas).

Clariant

Clariant and Huntsman announced the merger in May with the expectation that the deal would close smoothly.

"There are excellent opportunities to unlock value from the many high quality businesses that currently comprise Clariant," a spokesperson for White Tale, the vehicle they created to buy the stake, told Reuters.

"Unfortunately, we do not believe that the proposed merger with the Huntsman Corporation is one of those options."

Deal & Opposition

Clariant and Huntsman announced the merger in May with the expectation that the deal would close smoothly.

Both parties said at the time that they expected the deal to close by the end of the year, and that they were “confident that the required regulatory approvals can be obtained in a timely manner.”

The deal would create HuntsmanClariant, with predicted sales of $13 billion. Huntsman also plants on spinning off its Venator pigments business into an IPO, which makes some analysts consider the merger a smart move.

"Huntsman's portfolio, after the pending Venator spin-off, offers a highly complementary growth portfolio, in our view—complementary in a way that it puts both companies on a sounder, broader footing," Kepler Cheuvreux's Christian Faitz said.

However, some Clariant investors say it undermines the company’s original strategy of becoming a pure-play specialty chemicals company. The White Tale spokesperson went as far as to call the move “destructive.”

Huntsman

Some Clariant investors say the deal undermines the company’s original strategy of becoming a pure-play specialty chemicals company.

Counter analysts have said the investors’ push for a counterbid is smart.

“Clariant is the No. 1 takeover target in the sector, with a long list of interested parties,” Baader Helvea Equity research analyst Markus Mayer said.

Background

Huntsman manufactures a number of raw materials for coatings formulation. In addition to the pigments and additives that will be spun off as Venator, the company’s Advanced Materials division makes resins and curing agents, mainly for industrial and protective coatings. Huntsman Performance Products offers coating components (including functional amines, carbonates and polymer derivatives) and products for concrete manufacture. And the Polyurethanes division serves the coatings and adhesives industries, as well as furniture and other industries.

Clariant achieved sales of 5.8 billion Swiss francs—about $6.01 billion—in 2016. Its business units include Pigments, Additives and Catalysts, as well as Masterbatches (color additives for plastics), Functional Minerals, Oil and Mining Services and Industrial & Consumer Specialties.

Currently, there is no date set for an investor vote on the merger, though sources claim a vote would not happen until after Huntsman spins off Venator.

   

Tagged categories: Acquisitions; Business matters; Business operations; Clariant; Huntsman; Mergers

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
KTA-Tator, Inc. - Corporate Office
 
Instrument Service Department
 
Are you a QP certified contractor? KTA’s Instrument Service Department can help keep you compliant!
Click or call 1-800-KTA-GAGE.
 

 
International Roofing Expo
 
IRE 2018
 
Attend the IRE where exhibitors and education offer serious solutions, real results and opportunities to make powerful connections. Register for FREE Expo.
 

 
Digital Facilities Corporation
 
Manage the Building Envelope
 
FM-Pro™ is an innovative solution for the assessment and management of Roofing, Facade and Paving for building owners, asset area consultants, and product suppliers.
 

 
A&I Coatings
 
Seal n Peel Strippable Coatings
 
Protect your assets with Seal n Peel. Easy to apply and remove. Can be left on for up to 12 months. Water based, enviro mentally friendly.
 

 
PPG Paints
 
PPG PAINTS™ SPEEDHIDE® INTERIOR LATEX
 
This high-hiding, low-VOC, low-odor paint enables a space to be painted while occupied and delivers the durable product performance professionals require.
 

 
World of Concrete
 
WOC 2018 – Las Vegas, NV
 
Visit the WOC website for more details about the World of Concrete 2018: January 23-26; Seminars 22-26 at the Las Vegas Convention Center in Las Vegas, NV, USA.
 

 
Atlas Material Testing Technology
 
Helping You Put Your Products To The Test
 
  • Outdoor Accelerated Weathering
  • Laboratory Testing Services
  • Accelerated Weathering Instruments

  • www.atlas-mts.com
    atlas.info@ametek.com
 

 
EMME Controls
 
EMME (Energy Management Made Easy)
 
We are a manufacturer of a temperature control & energy management system which works with most any existing heating & cooling equipment, providing significant value/impact as it relates to comfort & energy savings.
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@durabilityanddesign.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 

© Copyright 2012-2017, Technology Publishing Co., All rights reserved