Hexion/Huntsman will have annual sales of $14bn

12 July 2007 20:22  [Source: ICIS news]

HOUSTON (ICIS news)--The merger between Hexion Specialty Chemicals and Huntsman will create a company with annual sales of $14bn (€10.2bn), Hexion's chief executive said on Thursday during a conference call.

Earlier on Thursday, Huntsman announced that its board of directors had accepted Hexion's $10.6bn bid to buy the company. The offer comes to $28/share.

Huntsman had previously accepted a $9.6bn bid from Basell, which came to $25.25/share.

Huntsman and Hexion will split the $200m penalty fee connected to cancelling the Basell agreement.

The deal still needs approval from regulators in the US and Europe.

Hexion chief executive Craig Morrison gave a brief overview of the combined company during a conference call held on Thursday. Morrison's message was that the sum of the two companies will be greater than its parts.

"This creates a powerful global growth platform," Morrison said.

The combined company will reach new customers and markets in all of the world's major geographical areas, while providing existing customers with a full portfolio of specialty chemicals, he said. "We believe it will be one of the largest specialty chemical companies in the world."

Huntsman and Hexion will continue to operate separately until the deal closes, Morrison said.

($1 = €0.73)

By: Al Greenwood
+1 713 525 2653

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