Clariant AG (CLZNY) and Huntsman Corp. (HUN - Get Report) said Monday that they had agreed to terms that will lead to a merger between the two chemical companies in deal that will be worth $20 billion.

HuntsmanClariant will have sales of around $13.2 billion, the companies said, based on pro-forma 2016 sales and adjusted operating profit of $2.3 billion. The deal is expected to close before the end of the year, the companies said in a statement.

"This is the perfect deal at the right time," said Clariant CEO Hariolf Kottmann. "This is in the best interest of all our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him."

READ MORE: Clariant and Hunstman to Combine in $20 Billion 'Merger of Equals'

This article was written by a staff member of TheStreet.