Dive Brief:
- Chemical giants Olin and Huntsman have struck an all-stock deal to merge and create a North American entity valued at $12.5 billion, based on the companies’ combined 2025 revenue.
- The combined company will be renamed OlinHuntsman. In a joint press release, the companies said it will beneft from increased scale, scope and chlorine flexibility that will “create value across markets and cycles.”
- The merger is expected to close in the first half of 2027. Upon completion, Olin shareholders will own about 54.5% and Huntsman shareholders will own approximately 45.5% of the combined company.
Dive Insight:
The pending deal will combine Olin’s manufacturing and feedstock capabilities, including chlorine and caustic soda, with Huntsman’s downstream products, including polyurethanes, and formulation expertise, according to the release.
The combination would also allow OlinHuntsman to grow with its customers at multiple stages in the value chain, using “lower-cost producer economics” to increase profitability.
Furthermore, the merger would enable the new company to “pursue opportunities that neither business could fully capture on its own,” Olin President and CEO Ken Lane said in a statement.
Olin and Huntsman have identified over $400 million in savings and increased efficiencies by merging their operations. This includes $300 million of potential savings in the first two years and another $100 million of raw material integration benefits that could start in 2031.
OlinHuntsman will also aim to streamline operations and expenses. Additionally, the new company expects to see about $125 million in cash tax benefits.
As the chemical industry continues to expand globally, it’s also competing against countries, more so “than ever before,” compared to contending with other chemical entities, trade policies, and supply chains, said Huntsman President and CEO Peter Huntsman in a statement.
“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,” Huntsman said.
Once the merger is closed, OlinHuntsman will reshuffle its leadership. Lane will serve as CEO, and Huntsman will serve as the non-executive chairman of the company’s board of directors.
Huntsman CFO Phil Lister will serve in the same role for the combined company and Olin CFO Todd Slater will serve as chief integration officer.
