Huntsman and Clariant to merge
On May 22, 2017, Huntsman (HUN) and Clariant announced that their respective boards have approved a merger to form a new entity called HuntsmanClariant. The combined entity’s enterprise value is estimated at $20.0 billion. The merger is expected to bring a cost-saving synergy of more than $400.0 million and a value creation of more than $3.5 billion. The merger is expected to be completed by the end of 2017.
Peter. R. Huntsman, president, and CEO (chief executive officer) of Huntsman, said, “I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade. We also look forward to a close association with his immensely talented colleagues around the world. Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility.”
Huntsman stock for week ended May 26
For the week ended May 26, 2017, HUN closed at $25.76, falling 7.3% for the week. HUN stock was trading 8.2% above the 100-day moving average of $22.87, indicating an upward trend. On a year-to-date basis, HUN has risen 29.7%.
With a 14-day RSI (relative strength index) of 47, the stock is neither overbought nor oversold. An RSI of 70 or above indicates that the stock is overbought, and a score of 30 or below suggests that the stock is oversold. HUN’s 52-week low is $14.16, and its 52-week high is $28.20.
HUN outperformed the First Trust Materials AlphaDEX ETF (FXZ), which rose 0.50% for the week ended May 26, 2017. FXZ invests 1.3% of its portfolio in Huntsman. The top holdings of the fund include Tahoe Resources (TAHO), Owens-Illinois (OI), and FMC (FMC) with weights of 3.9%, 3.7%, and 3.6%, respectively, as of May 26, 2017.