After the merger or divestiture of 25 businesses o

2022-06-27
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Clariant may want to divest 25% of its products, including its colorant and masterbatch business, after a total of US $20billion merger with Huntsman, an American family chemical manufacturer

"we have always planned to divest these businesses at the right time," explained harriolf kottmann, CEO of Clariant group, at the semi annual financial report conference in Zurich on July 27, 2017

Clariant's Masterbatch business is the heritage of Hoechst, a German chemical producer that no longer exists. In its 1996 merger with Ciba and Sandoz, a Swiss company, Clariant was stripped from special chemicals and entered Clariant. Clariant's colorant business originally belonged to a department of Ciba special chemistry

before this cross ocean merger plan was released, the investors of Clariant had already indicated that PCU was a bionate-s material related business in the license document for the company to divest its plastics

on July 4, 2017, corvex and 40 North, the U.S. hedge funds, announced that they had purchased a total of 7.2% of Clariant's shares through their joint venture acquisition agency white tower holdings, and hoped to use their shares to prevent this merger

the two funds hold a critical attitude towards this merger. A spokesman for white tale said that the merger of Klein and Huntsman lacked strategic logic and would affect Klein's strategy to become a professional specialty chemicals company. Currently, the two parties planning to merge have not commented on the evaluation

Clariant CEO harriolf kottmann tried to downplay the threat of merger deviation from the plan at the press conference in Zurich, insisting that the 20 largest shareholders of Clariant, except white tale, did not object to the merger proposal. "We have discussed with the top 20 investors for many times, and their total shares exceed 50% of the company's total assets." Kottmann said in an interview with Reuters. "We didn't meet any investors who opposed the merger."

the CEO of Huntsman told Dow Jones newswires that there was no "plan B" in Huntsman's merger plan

Klein and Huntsman said in a special joint declaration on July 27, 2017 that although some active investors plan to be critical, the merger is proceeding as planned and will be implemented at the end of this year or early next year. The two sides also said that the combined project team has made "excellent progress" in the implementation of cost collaboration benefits, and is confident to achieve the goal of $400million in collaboration benefits and $25million in tax savings each year

at the same time, the two companies also claimed that they had submitted to the US, EU and Chinese authorities the key regulatory filing documents that they were more willing to seek to expand the scope under sound conditions. In the United States, both parties have submitted preliminary filing documents to the U.S. Commission on foreign investment (CFIUS), which will then determine whether the merger is in line with the national security interests of the United States

the announcements of both parties also said that the product management principles and capital allocation plans of the merged company have been completed. At the same time, they also stressed that "both parties have a clear consensus on the future core market branches of the merged company, and most of the direct investment will be injected into these development fields and regions."

the merged company will further strengthen the current downstream business, and focus on expanding the business opportunities of formula based and application based businesses, high-end composite materials, customized polyurethane (PU) systems and customer-oriented/joint research and development products

the existing isocyanates and petrochemical base materials of both parties, such as ethylene oxide (EO) and propylene oxide (PO) below the swing rod, are expected to further extend to the high-end downstream polyurethane system and surfactant business

in order to support kottmann's comments on the divested assets, the announcement also said that the product list of the merged company would be simplified and the complexity would be reduced. At the same time, the strategic flexibility of the high-1 denier brine reuse project into the industrial trial production would be used to consider the acquisition of other businesses with high added value or divestiture businesses. Its plastics coatings and textile effects companies will focus on generating cash and sales, while all other businesses will focus on expansion and profit

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