Specialities firms' merger plans
15 Jan 2000
Two mergers in the European speciality chemicals industry have signalled the ever-increasing pace of consolidation in the sector. Ciba and Clariant - the demerged specialities wing of Hoechst - will create a giant with combined annual sales around SFr18billion (£7.2billion). Equally significant is the merger of German firms Degussa and Huls, whose combined turnover totals DM20billion (£7.1billion).
Clariant will retain the major share of the Ciba merger, with its shareholders owning 54 per cent of the new company. The venture will be organised around five business groups: additives and water treatment; cellulose ethers; process chemicals; fine chemicals; and colours. The firm's management expects to achieve SFr600million (£240million) in savings by 2001. Some 3000 jobs will be lost as a result of the merger.
Degussa-Huls also hopes for significant synergies, with savings amounting to DM350million per year. The company will be organised around four main segments: health and nutrition; speciality products; polymers and intermediates; and performance materials.
