Clariant and Huntsman Chemicals have scrapped their merger after a rebellion by Clariant’s shareholders.
A group of shareholders opposed to the HuntsmanClariant deal, ‘White Tale’, increased its stock to hold over a fifth of Clariant, preventing a two-thirds consensus required under Swiss company law.
Both Peter Huntsman and Clariant chief Hariolf Kottmann, said they still thought a tie-up ‘would be in the long-term best interests’ of investors.
They said: "However, given the continued accumulation of Clariant shares by activist investor White Tale Holdings and its opposition to the transaction, which is 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."
The end of the road for the merger talks lets Clariant walk away without paying a $210million ‘breakage fee’,
Kottmann said: “While White Tale's position on the merger has been different from ours, we share a common interest in increasing Clariant’s value. We are committed to achieving this through a continuation of our existing and successful long-term growth strategy. That said, we will continue our dialogue with all our stakeholders.”
Hariolf Kottman and Peter Huntsman, planning their merger.
