Skip to Content
Morningstar

Merger Favors Huntsman Sharesholders Over Clariant's

The majority of value is accruing to Huntsman shareholders because the company is currently significantly overvalued, while Clariant is only moderately overvalued.

Securities In This Article
Huntsman Corp
(HUN)

On May 22, Clariant and

The deal is structured as an all-stock merger of equals, with the new company named HuntsmanClariant. Huntsman shareholders will receive 1.2196 shares in HuntsmanClariant for each Huntsman share, while Clariant shares will be exchanged 1 for 1. This results in pro forma ownership of 52% Clariant and 48% Huntsman. The deal is expected to close by the end of 2017. We think the deal has a high probability of closing given limited overlap between the two businesses. The fact that closing is expected before year-end is strong evidence of the minimal anti-trust risk.

Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.

More in Stocks

About the Author

Rob Hales

Senior Equity Analyst
More from Author

Rob Hales, CFA, is a senior equity analyst for Morningstar Holland BV, a wholly owned subsidiary of Morningstar, Inc. Based in Amsterdam, he covers the European chemicals sector, as well as the engineering and construction and pulp and paper industries.

Before joining Morningstar in 2015, Hales spent five years in equity research covering gold-mining stocks for BMO Capital Markets and CIBC World Markets. Previously, he worked for several years as a credit analyst for an energy trading company and a Canadian bank.

Hales holds a bachelor’s degree in business administration from Simon Fraser University and a master’s degree in business administration from the Ivey Business School at Western University. He also holds the Chartered Financial Analyst® designation.

Sponsor Center