Huntsman Corporation (NYSE:HUN) is combining forces with privately held Swiss chemicals maker Clariant AG to create a company with a market value north of $14 billion. HUN stock added more than 5% this morning in pre-market trading.
Reuters reported in March that the two companies ended merger talks late last year over a disagreement about who would lead the combined company. HUN stock has increased more than 37% in the last six months.
The combined specialty chemicals company will be 52%-owned by Clariant shareholders, the Swiss company said in a statement.
Many European companies have turned to deal making as growth in the chemicals industry has slowed, Reuters reported. They’ve lost market share to rivals in Asia, where demand is growing more quickly. Clariant, was formed in the mid 1990s from parts of Switzerland’s Sandoz and Germany’s Hoechst.
Woodlands, Texas-based Huntsman, a maker of chemicals used in paint, clothing and construction, invented the iconic clam-shell styrofoam container that keeps McDonald’s Big Macs warm.