Clariant, the Swiss specialty chemical maker, is looking to carry out a multi-billion-dollar merger with US rival Huntsman Corporation.

On 21 May, Clariant said the merger will create a company — to be known as HuntsmanClariant — with an enterprise value of about $20 billion, annual sales of about $13.2 billion and earnings (before interest, tax, depreciation and amortisation) of $2.3 billion.

A spokesman said: “We expect that the combined company will realise more than $3.5 billion of value creation from approximately $400 million in annual cost synergies and that there would also be additional cash-tax savings.”

Huntsman share-holders will end up with a 48% stake in the newly created group, and the board of directors will have equal representation from both companies. Hariolf Kottmann, Clariant’s chief executive (pictured), who will become the chairman of the combined company, said: “This is the perfect deal at the right time.

Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities.”

Peter Huntsman, who is president and chief executive of Huntsman and will become the new company’s chief executive, said he is looking forward to working closely with Mr Kottmann.

“Together, we will create a global leader in specialty chemicals with a combined balance sheet that will provide substantial financial strength and flexibility.”