Two investment firms are challenging the proposed merger of Huntsman Corp. and Clariant International Ltd.
Corvex Management and 40 North Management — both based in New York — issued a joint statement on July 4 criticizing the proposed merger for having "no strategic rationale." The two firms combined own 7.2 percent of Clariant, which is based in Muttenz, Switzerland.
Clariant and Huntsman, which is based in The Woodlands, Texas, announced the merger on May 22. It would create a specialty chemicals and plastics company with annual sales of around $13 billion. The merger is scheduled to be completed by the end of 2017.
A spokesman for Clariant commented: "We have noticed the increased investment of Corvex /40 North in Clariant and their demands. We are in close dialogue with them and will therefore not comment further on this in public. We are taking all of our shareholders' interests seriously and maintain our long-practiced open and engaging attitude with them."