Olin and Huntsman Announce Transformative Merger of Equals to Create \$12+ Billion North American Chemicals Leader
Key Highlights
- All-stock merger of equals: Olin Corporation (NYSE: OLN) and Huntsman Corporation (NYSE: HUN) have entered into a definitive agreement to combine their businesses, forming a new entity, OlinHuntsman Corporation.
- Combined revenue: The newly formed company is projected to generate approximately \$12.5 billion in revenues for 2025, positioning it as a leading player in the North American chemicals sector.
- Significant cost synergies: Management has identified over \$400 million in actionable cost synergies and integration benefits, with \$300 million expected to be realized within 24 months and the full amount by year three. An additional \$100 million in raw material integration benefits is anticipated beginning in 2031.
- Leadership structure: Ken Lane, current President and CEO of Olin, will lead the combined company as CEO. Peter Huntsman, current Chairman, President, and CEO of Huntsman, will serve as non-executive Chairman of the Board.
- Shareholder structure: Upon completion, Olin shareholders will own 54.5% and Huntsman shareholders will own 45.5% of the new company. Huntsman shareholders will receive 0.5476 shares of Olin for each Huntsman share.
- Expanded vertical integration: The merger will leverage Olin’s upstream manufacturing and feedstock capabilities (chlorine, caustic soda, etc.) with Huntsman’s downstream product and formulation expertise, enhancing cost position and growth potential.
- Stronger financial profile: The all-stock structure is expected to preserve balance sheet strength, improve earnings and cash flow through cycles, and enable disciplined capital allocation toward shareholder returns and growth projects.
- Headquarters: The combined company will be headquartered in The Woodlands, Texas.
- Winchester business: Olin’s Winchester ammunition business will continue to operate as a key business within the combined entity.
Strategic and Financial Rationale
- Enhanced scale and geographic footprint: OlinHuntsman will have a major presence in the U.S. Gulf Coast and significant operations in Europe and Asia, enabling it to capitalize on regional sector dynamics and serve diverse end markets including automotive, construction, infrastructure, and industrial applications.
- Compelling cost advantages: The combination is expected to result in a structurally lower cost position via vertical integration, purchasing power, and optimized operations, supporting higher margins and stronger cash flow.
- Tax benefits: Approximately \$125 million of cash tax benefits are expected through the acceleration of Net Operating Losses.
- Disciplined capital allocation: The merged entity will prioritize safe and reliable operations, maintain a stable dividend policy, focus on near-term deleveraging, and pursue high-return organic and inorganic growth projects.
Leadership, Governance, and Integration
- Board Composition: The Board of Directors will consist of ten members, equally representing Olin and Huntsman.
- Integration oversight: Todd Slater, Olin’s current CFO, will serve as Chief Integration Officer, reporting to the CEO. A Strategic Integration Committee will oversee the realization of synergies.
- Advisors: Olin is advised by Lazard with legal counsel from Cravath, Swaine & Moore LLP and Sidley Austin LLP. Huntsman is advised by Citi and Morgan Stanley, with legal counsel from Kirkland & Ellis LLP and additional advice from David Fox & Co. LLC.
Important Shareholder Information & Timing
- Shareholder votes required: The merger is subject to approval by shareholders of both companies and customary regulatory clearances. The transaction has been unanimously approved by both Boards and is expected to close in the first half of 2027.
- Exchange ratio and valuation: The exchange ratio (0.5476 Olin shares for each Huntsman share) was set based on an at-the-market methodology using a 30-day volume-weighted average price as of June 12, 2026, providing a premium to Huntsman shareholders and reflecting current market conditions.
- Price-sensitive events: The merger creates a leading chemicals company with lower costs, increased scale, and greater integration, all of which are expected to enhance long-term shareholder value and could have a positive impact on the share prices of both companies. However, the transaction is subject to regulatory and shareholder approvals and may face integration and market risks.
- Conference call details: A joint investor conference call was scheduled for June 16, 2026, at 8:00 a.m. ET, with webcast and dial-in details provided on both companies’ websites.
Risks and Forward-Looking Statements
- This transaction is subject to a range of risks including potential failure to secure shareholder or regulatory approvals, challenges in integration and synergy realization, market and economic risks, potential litigation, supply chain disruptions, and other operational risks.
- Forward-looking statements in this announcement are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Investors should review risk factors detailed in the companies’ filings with the SEC.
About Olin Corporation
Olin Corporation is a leading vertically integrated global manufacturer of chemical products and the top U.S. manufacturer of ammunition under the Winchester brand. Products include chlorine, caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid.
About Huntsman Corporation
Huntsman Corporation is a global chemical manufacturer with 2025 revenues of approximately \$6 billion, serving a broad array of consumer and industrial markets across more than 25 countries.
Additional Information
In connection with the proposed transaction, Olin and Huntsman will file relevant materials including a joint proxy statement and prospectus with the SEC. Investors are urged to read these materials when available as they will contain important information about the merger. These documents will be accessible via the SEC’s website and both companies’ investor relations pages.
Disclaimer: This article contains forward-looking statements based on current expectations and assumptions. Actual results could differ materially due to risks and uncertainties, including those described above and in the companies’ SEC filings. This is not an offer to sell or a solicitation of an offer to buy any securities. Investors should consult the official filings and seek professional advice before making investment decisions.
