Olin, Huntsman To Merge In All-stock Deal

(RTTNews) - Chemical makers Olin Corp. (OLN) and Huntsman Corp. (HUN) announced on Tuesday that they have agreed to combine in an all-stock merger of equals to create a North American chemicals company worth more than $12 billion.

In pre-market activity on NYSE, shares of Huntsman were down 8.78 percent, changing hands at $14.50, after closing Monday's regular session 1.52 percent higher.

In pre-market activity on NYSE, shares of Olin were down 1.22 percent, changing hands at $25.00, after closing Monday's regular session 0.68 percent higher.

Under the deal, Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share. Upon closing, Olin shareholders will own about 54.5 percent of the combined company and Huntsman shareholders about 45.5 percent.

The combined company, to be named OlinHuntsman, expects more than $400 million in total identified cost synergies and integration benefits. More than $300 million of the synergies are expected within 24 months and all by the end of year three, with an additional $100 million starting in 2031.

Olin President and Chief Executive Officer Ken Lane will become CEO of OlinHuntsman. Huntsman Chairman, President and CEO Peter Huntsman will serve as non-executive chairman of the board. Current Huntsman CFO Phil Lister will be CFO of the combined company.

The 10-member board will have equal representation from Olin and Huntsman. OlinHuntsman will be headquartered in the Woodlands, Texas.

The transaction will combine Olin's manufacturing and feedstock capabilities, including chlorine and caustic soda, with Huntsman's downstream products and formulation expertise.

Olin's ammunition business, Winchester, is expected to continue to operate as a key business within the combined company.

The deal has been unanimously approved by both boards and is expected to close in the first half of 2027, subject to regulatory approvals and shareholder approvals.