Olin to Combine With Huntsman in $12.5 Billion All-Stock Merger
The merger of equals aims to create a North American chemicals leader with $400 million in cost synergies and enhanced vertical integration.
**Olin Corporation (OLN) agreed to combine with Huntsman Corporation (HUN) in an all-stock merger of equals valued at approximately $12.5 billion**, the companies announced Monday. The transaction, which would create a leading North American chemicals company, is expected to generate more than $400 million in cost synergies and integration benefits.
Under the terms of the agreement, Huntsman shareholders will receive 0.5476 shares of Olin for each Huntsman share held. The exchange ratio was set using a 30-day volume-weighted average price as of June 12, 2026, delivering a premium to Huntsman shareholders relative to historical averages while reflecting current market conditions, Peter Huntsman, Chairman and CEO of Huntsman, said. Upon completion, Olin shareholders will own approximately 54.5% of the combined company, with Huntsman shareholders holding the remaining 45.5%. The deal is expected to close in the first half of 2027, subject to regulatory and shareholder approvals.
The combined company, to be renamed OlinHuntsman Corporation, will benefit from enhanced scale, vertical integration, and a structurally lower cost position, the companies said. Olin’s upstream manufacturing and feedstock capabilities—including chlorine and caustic soda—will merge with Huntsman’s downstream products and formulation expertise, enabling the new entity to serve customers across the value chain and improve cash flow through a more efficient operating model. More than $300 million of the identified synergies are expected to be realized within 24 months, with all synergies achieved by the end of year three. An additional $100 million in raw material integration benefits is projected to begin in 2031, alongside approximately $125 million in cash tax benefits from the acceleration of net operating losses.
"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, President and CEO of Olin, who will serve as CEO of the combined company. "Huntsman has built an impressive portfolio of polyurethane systems, formulation technologies, and advanced materials serving technical, application-driven end markets. By integrating those capabilities with Olin’s world-scale chemicals assets and operations, we will create an industry leader with greater flexibility to serve customers across the value chain and generate stronger cash flow across the cycle."
Peter Huntsman, who will assume the role of non-executive Chairman of the combined company’s board, emphasized the strategic rationale behind the merger. "As our industry continues to globalize, we compete more today against countries, trade policies, and global supply chains than ever before," he said. "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."
The transaction unites two complementary businesses with a shared focus on North American assets and global reach. Olin, a vertically integrated manufacturer of chemicals and ammunition, reported 2025 revenue of approximately $6.5 billion, while Huntsman, a diversified chemicals producer, generated roughly $6 billion in revenue over the same period. The combined company will operate more than 55 manufacturing and R&D facilities across 25 countries, serving end markets including automotive, construction, infrastructure, and industrial applications. Olin’s Winchester ammunition business will continue as a standalone unit within the new entity.
The merger reflects a broader trend of consolidation in the chemicals sector as companies seek to bolster scale and cost efficiencies amid global competition. The deal follows a pattern of strategic combinations aimed at enhancing vertical integration and operational synergies, positioning OlinHuntsman to better navigate cyclical market dynamics.
OlinHuntsman will prioritize disciplined capital allocation, focusing on maintenance capital to support safe and reliable operations, a stable dividend policy, and near-term deleveraging. The combined company will be headquartered in The Woodlands, Texas, with a board of directors evenly split between Olin and Huntsman representatives. Lazard served as financial advisor to Olin, while Citi and Morgan Stanley advised Huntsman.