Upcoming AWS Coverage on FMC Corp. Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 24, 2017 / Active Wall St. blog coverage looks at the headline from Woodlands, Texas based Huntsman Corp. (NYSE: HUN). Chemicals Majors Huntsman and Muttenz, Switzerland based Clariant announced their merger on May 22, 2017. The all-stock transaction is dubbed as the "merger of equals" and is set to create one of the largest specialty chemicals Company in the world with an enterprise value of approximately $20 billion. Register with us now for your free membership and blog access at:
http://www.activewallst.com/register/
One of Huntsman's competitors within the Chemicals - Major Diversified space, FMC Corporation (NYSE: FMC), announced on May 02, 2017, its financial results for Q1 2017. AWS will be initiating a research report on FMC Corp. in the coming days.
Today, AWS is promoting its blog coverage on HUN; touching on FMC. Get all of our free blog coverage and more by clicking on the link below:
http://www.activewallst.com/register/
Commenting on the merger Peter R. Huntsman, President and CEO of Huntsman said:
"I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade....Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility."
Hariolf Kottmann, CEO of Clariant added:
"Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities. This is in the best interest of all of our stakeholders."
Details of the merger
The merged Company will be named as HuntsmanClariant. The shareholders of Huntsman will receive 1.2196 shares in the merged Company for each share they hold. Clariant's shares will continue to remain as a share in the merged Company. Huntsman's shareholders will own 48% stake and Clariant's shareholders will own 52% stake in HuntsmanClariant. The Boards of Directors of both Companies have already approved the deal.
The transaction is expected to close in Q4 2017 and is subject to the approvals from the shareholders of both Companies, regulatory approvals, and other closing conditions.
Once the merger is finalized, HuntsmanClariant will have its global headquarters at Pratteln in Switzerland and operational headquarters at The Woodlands, Texas. The merged Company will be listed at both the SIX Swiss Exchange and the New York Stock Exchange. The Company will follow Swiss Corporate Governance standards.
HuntsmanClariant's Board of Directors will have equal members from Huntsman and Clariant. The current CEO of Clariant, Hariolf Kottmann will take over as the Chairman of the Board and current President and CEO of Huntsman, Peter Huntsman will take charge as the CEO of HuntsmanClariant. Jon Huntsman, founder and Chairman of Huntsman, will become Chairman Emeritus and board member of HuntsmanClariant.
Huntsman had announced the IPO of Venator Materials PLC, Huntsman's pigments and additives business in early May 2018. The current merger will not impact the IPO and it will continue as previously planned.
Advantages of the merger
The merger of Huntsman and Clariant will result in a global specialty chemicals Company with sales of approximately $13.2 billion, an adjusted EBITDA of $2.3 billion, and a combined enterprise value of approximately $20 billion on a pro-forma 2016 basis. The merger will lead to value creation of more than $3.5 billion for its shareholders. The merger is expected to result in annual cost synergies of approximately $400 million. The cost synergies would be from reduction in operational costs and streamlining of procurement. The Companies expect that the full synergy run-rate will be achieved within two years of closing of the transaction. Additionally, the merger is also expected to lead to tax savings.
The merged Company will have a larger global footprint which will also include lucrative markets like US and China. The merger will open up new opportunities for joint innovations and knowledge sharing. HuntsmanClariant's shareholders will benefit from a strong balance sheet and improved cash flow generation. Clariant is confident that it will continue to pay attractive dividends to its shareholders even after the merger is finalized.
Stock Performance
On Tuesday, May 23, 2017, Huntsman's stock closed the trading session at $25.21, slipping 3.59% from its previous closing price of $26.15. A total volume of 16.30 million shares have exchanged hands, which was higher than the 3-month average volume of 3.66 million shares. The Company's stock price soared 12.14% in the last three months, 31.99% in the past six months, and 73.50% in the previous twelve months. Furthermore, on a year to date basis, the stock skyrocketed 32.13%. The stock is trading at a PE ratio of 17.35 and has a dividend yield of 1.98%. The stock currently has a market cap of $5.85 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street