Huntsman Corp. (NYSE:HUN) and Switzerland's Clariant A.G. (OTCPX:OTCPK:CLZNY) announced Monday that they have agreed to merge, and the markets seemed initially to approve. Clariant closed in Zurich up 3.5% for the day, having traded as high at +9.3%, but Huntsman, having risen 3.1% at the opening, closed down 2.1%, suggesting that Huntsman's investors are less enthusiastic about the prospect.
The deal is an all-stock transaction. Huntsman shareholders will receive 1.2196 shares in HuntsmanClariant for each Huntsman share that they own, and Clariant shareholders will exchange their shares for HuntsmanClariant's on a one-for-one basis. This will give Clariant's shareholders 52% of the combined company.
