US: Clariant dodges fees in scrapped Huntsman merger

The cancellation of merger plans between Clariant and Huntsman in the face of opposition from an activist investor means that the Switzerland-headquartered company is unlikely to be called on to pay millions in breakup fees, according to CFO Patrick Jany.

Clariant had been potentially on the hook for a US$210 million breakup fee if it had moved to scrap the deal on its own and an additional US$60 million charge if the planned merger with US-based specialties firm had been voted down at a planned extraordinary general meeting (EGM).

The mutual decision by the two companies to walk away from the deal on Friday, October 27. Means that those fees are at present no longer a factor

“We are in a situation where we mutually agreed to terminate the merger without any breakup fee for the group, so we saved on the US$210 million on the unilateral termination of the deal, and we also avoided the US$60 million which would have been due if the EGM had voted against it,” Jany said.

Full Content: Financial Times

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