International. Clariant and Huntsman Corporation recently released a first update on the planned merger of equals to keep their shareholders informed. Preparations to create HuntsmanClariant, one of the world's leading specialty chemical companies, are showing solid and continued progress and are progressing as planned with an unchanged closure planned for December 2017/January 2018.
Clariant and Huntsman have agreed on a joint strategic direction for short- and long-term value creation based on a continued focus on increased growth and higher business margins, expanding existing supply chain presence and leveraging complementary product portfolios. Additional organic sales revenue growth of around 2% per annum to approx. 20% EBITDA margin and synergies in excess of US$400m, as well as US$25m of tax savings.
The merger brings together two specialty chemical companies with similar EBITDA margins of 17.2% (including synergies). Complementarity benefits will be obtained between Performance Products, Care Chemicals and Natural Resources, which account for approx. 35% of HuntsmanClariant's combined sales and maintain a wide range of surfactants in high-end niches worldwide.
You will have significant growth opportunities, including cross-selling potential and new product applications. Complementary assets and geographic adjustment provide significant business opportunities and a more global reach within established routes to market. In addition, HuntsmanClariant will leverage its broad asset base while continuing to move toward the most differentiated specialties and applications. As a result of these complementary product portfolios and structures, additional organic sales revenue increased from around 2% p.a. to approx. 20% EBITDA margin.
