Hoechst, Clariant join specialties in major merger; companies should benefit from enormous synergies and significant savings.(merger of Clariant Corp. and Hoechst AG's specialty chemicals operations)

Chemical Market Reporter, December, 1996 by Milmo, Sean

Companies should benefit from enormous synergies and significant savings. HOECHST IS PLANNING to merge most of its specialty chemicals business with Clariant to form the world's single biggest specialty operation, just ahead of Ciba, with total sales of around DM9 billion ($5.8 billion).

The two companies have signed a general agreement under which Hoechst will take a minority shareholding, understood to be 45 percent, in an expanded Clariant, which is financing the transaction through a share capital increase. Clariant, formerly the specialty chemicals division of Sandoz before its demerger last year, is taking on part of Hoechst's debt, thought to be around DM3 to 4 billion, equivalent to about a third of Hoechst's total debt of DM10 to 11...

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