Huntsman to Buy Olin in $12 Billion All-Stock Merger
The deal would create a North American chemicals leader with $400 million in cost synergies and expanded chlorine optionality.
**Huntsman Corporation (HUN) agreed to acquire Olin Corporation (OLN) in a $12 billion all-stock merger of equals**, the companies announced Monday, combining two North American chemical producers to form a vertically integrated leader with enhanced scale and cost advantages.
Under the terms of the agreement, Huntsman shareholders will receive 0.5476 shares of Olin for each Huntsman share held, valuing the transaction at approximately $12 billion based on combined 2025 revenue of $12.5 billion. The exchange ratio was set using a 30-day volume-weighted average price through June 12, 2026, delivering a premium to Huntsman shareholders relative to historical averages while reflecting current market conditions, the companies said. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and shareholder votes at both companies.
The merger is designed to create a more resilient chemicals company with expanded chlorine optionality and a structurally lower cost position, according to the companies. The combined entity, to be named OlinHuntsman Corporation, will integrate Olin’s upstream manufacturing and feedstock capabilities—including chlorine and caustic soda—with Huntsman’s downstream formulation expertise and advanced materials portfolio. Executives said the deal would enable the company to serve customers across the value chain, improve margins, and generate stronger cash flow through cycles.
"As our industry continues to globalize, we compete more today against countries than companies, trade policies and global supply chains than ever before," said Peter Huntsman, Chairman, President and CEO of Huntsman. "The opportunities this merger creates enable us to generate greater value for our shareholders, deliver exceptional service and products for our customers and provide greater stability and opportunities for our associates. This merger of equals takes two great companies and creates a much stronger global leader".
Olin operates as a leading vertically integrated chemical manufacturer and a top U.S. ammunition producer, with core products including chlorine, caustic soda, vinyls, epoxies, and Winchester-branded ammunition. Huntsman, a global diversified chemicals company with 2025 revenue of approximately $6 billion, brings a portfolio of polyurethane systems, formulation technologies, and advanced materials serving automotive, construction, and industrial markets. The combined company will maintain Olin’s ammunition business, Winchester, as a standalone unit, while leveraging complementary assets in the U.S. Gulf Coast, Europe, and Asia to capitalize on regional sector dynamics.
The companies have identified more than $400 million in cost synergies and integration benefits, with the vast majority expected to be realized within 24 months of closing and all by the end of year three. These synergies will be driven by purchasing and raw material integration, operational optimization, and SG&A savings, with an additional $100 million in raw material benefits anticipated starting in 2031. OlinHuntsman also expects to realize approximately $125 million in cash tax benefits through the acceleration of net operating losses.
Upon closing, current Olin CEO Ken Lane will serve as CEO of the combined company, while Peter Huntsman will assume the role of non-executive Chairman. The board will consist of ten members, evenly split between Olin and Huntsman representatives. The new company will be headquartered in The Woodlands, Texas, with Todd Slater, Olin’s current CFO, appointed as Chief Integration Officer to oversee synergy realization.
The transaction has been unanimously approved by the boards of both companies. Lazard is serving as financial advisor to Olin, while Citi and Morgan Stanley are advising Huntsman. The deal is subject to customary closing conditions, including regulatory clearances and approvals from shareholders of both companies.