Olin to Buy Huntsman in All-Stock Merger of Equals Valued at $12.5 Billion
The deal pairs Olin's upstream chlorine and caustic soda assets with Huntsman's downstream polyurethane systems, targeting more than $400 million in cost synergies.
Olin Corporation (NYSE: OLN) agreed to acquire Huntsman Corporation (NYSE: HUN) in an all-stock merger of equals that would create a combined chemicals company with roughly $12.5 billion in annual revenue, the companies said Monday.
Under the terms of the definitive agreement, Huntsman shareholders will receive 0.5476 shares of Olin for each share of Huntsman they hold. The exchange ratio was set using 30-day volume-weighted average prices measured as of the close on June 12, 2026, a method Peter Huntsman described as delivering "a premium to Huntsman's shareholders relative to the historical averages while reflecting current market conditions". Upon closing, Olin shareholders will own approximately 54.5 percent of the combined entity and Huntsman shareholders roughly 45.5 percent. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and votes by both companies' shareholders.
"This combination provides a compelling opportunity for Olin and Huntsman to create a more resilient and value-focused chemicals company anchored in North America," said Ken Lane, Olin's president and chief executive officer. Lane argued that integrating Huntsman's polyurethane systems, formulation technologies and advanced materials with Olin's world-scale chemicals assets would generate "stronger cash flow across the cycle and pursue opportunities that neither business could fully capture on its own".
Huntsman, which reported 2025 revenue of approximately $6 billion, operates more than 55 manufacturing, R&D and operations facilities in roughly 25 countries and employs about 6,000 people. The company's downstream products and formulation expertise would sit atop Olin's chlorine and caustic soda feedstock platform, enabling the combined entity—dubbed OlinHuntsman—to grow with customers at multiple points in the value chain. Olin's Winchester ammunition business will continue to operate within the combined company.
The companies identified more than $400 million in total cost synergies and integration benefits. More than $300 million of that figure is expected to be realized within 24 months, driven by purchasing and raw material integration, operational optimization and SG&A savings, with the remainder captured by the end of year three. An additional $100 million in raw material integration benefits is projected starting in 2031, and OlinHuntsman expects roughly $125 million in cash tax benefits through the acceleration of net operating losses.
The combined company will be headquartered in The Woodlands, Texas. Ken Lane will serve as chief executive officer, Peter Huntsman as non-executive chairman, and Phil List—currently Huntsman's executive vice president and CFO—as finance chief of the merged entity. Olin's current CFO, Todd Slater, will take on the role of chief integration officer, reporting to Lane, and a Strategic Integration Committee of the board will oversee synergy realization. The ten-member board will be split evenly between the two companies.
Lazard advised Olin, with Cravath, Swaine & Moore and Sidley Austin as legal counsel. Citi and Morgan Stanley advised Huntsman, alongside Kirkland & Ellis.