The new entity Huntsman Clariant will have its headquarters at Clariant’s base in Basel, Switzerland while Huntsman’s North Houston location at The Woodlands will be the operational headquarters.

“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,” said Hariolf Kottmann, CEO of Clariant. “This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him.”

Huntsman Clariant is expected to focus on its polyurethanes, coatings materials, and other chemicals into growing markets such as personal care, packaging, and textiles with possible interest in auto manufacturing too.

Peter R Huntsman, president and CEO of Huntsman, commenting on the merger 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. We also look forward to a close association with his immensely talented colleagues around the world. Together, we will create a global leader in speciality chemicals with a combined balance sheet providing substantial financial strength and flexibility.”

According to a leading chemical industry publication, the merger of Huntsman and Clariant continues relentless chemical industry consolidation. Dow Chemical and DuPont expect to complete their historic merger in August. Deals to combine ChemChina and Syngenta, Bayer and Monsanto, and Linde and Praxair also continue to advance.