They continued: 'Under these circumstances and in light of the high level of disruption and uncertainty that has been created for both companies, we have jointly decided to terminate the merger agreement. This will allow both companies to focus again fully on their respective stand-alone strategies in the best interests of the companies and their shareholders, associates, and other stakeholders. We maintain a great respect for one another, and we want to recognize and express our mutual and deep appreciation for the efforts and incredible commitment demonstrated by the associates of each company over the past several months."'
'We regret the missed opportunity for value creation and thank our shareholders for their support,' said Rudolf Wehrli, Chairman of the Clariant Board of Directors. He said the focus will now be on further strengthening the company’s market position as a specialty chemicals company.
Clariant’s CEO Kottmann said that White Tale Holdings position was 'different from ours' but that both share 'a common interest in increasing Clariant’s value.' He added: 'That said, we will continue our dialogue with all our stakeholders.'
The Termination Agreement foresees no payment of a break fee on either side. Clariant, therefore, avoids paying both the USD 210m deal breakage fee and the $ 60m EGM non-approval fee as foreseen in the Merger Agreement.
This story first appeared on the Plastics News Europe website.