Switzerland-headquartered Clariant AG and U.S.-headquartered Huntsman Corp. have announced a definitive agreement to merge in an all-share transaction, as approved by their boards of directors. The proceeds from Huntsman's planned IPO of its pigments and additives business Venator will be fully utilized for debt redemption. However, if the IPO does not happen, the combined company HuntsmanClariant's adjusted funds from operations to debt ratio could be about 20%-22%, which is lower than the 30% we anticipated for Clariant in 2017 prior to the merger. HuntsmanClariant will benefit from bigger size and enhanced geographical, product, and end-market diversity. The disposal of Venator (if implemented as planned) should further support the resilience of the merged company's EBITDA. If Venator is retained, it could
