Key facts
- Olin will acquire Huntsman in an all-stock deal valued at approximately $2.43 billion.
- Huntsman shareholders will receive 0.5476 Olin shares for each share they own.
- The deal is expected to generate over $400 million in cost synergies.
- The combined company will be led by Olin CEO Ken Lane, with Peter Huntsman as non-executive chairman.
- The transaction is anticipated to close in the first half of 2027.
Olin announced on Tuesday it will acquire Huntsman in an all-stock deal valued at approximately $2.43 billion, combining two U.S. chemical producers. The agreement stipulates that Huntsman shareholders will receive 0.5476 Olin shares for each share they own. This values the deal at about $2.43 billion, based on Huntsman's outstanding shares.
The implied offer price of $13.85 per share represents a discount of about 12.8% to Huntsman's last closing price. In morning trading, Huntsman shares fell 13%, while Olin's shares dropped 2.4%.
Chemical producers globally are reassessing strategies due to stagnant demand, rising production costs in Europe, and evolving regulatory requirements. Heightened regional tensions since late February have also disrupted oil and petrochemical flows through the Strait of Hormuz, impacting global chemical supply and prices for plastics and polymers.
The merger is expected to create a chemical company with over $12 billion in annual revenue and generate more than $400 million in cost synergies. The combination aims to leverage Olin's manufacturing and feedstock capabilities, such as chlorine and caustic soda, with Huntsman's downstream products and formulation expertise, enhancing vertical integration and reducing feedstock costs.
Executives indicated on a conference call that Olin's ammunition division, Winchester, will remain a key part of the portfolio, benefiting from the combined company's supply chain efficiencies. Opportunities are also seen in the epoxy sector to compete in previously inaccessible industries.
The combined entity, to be named OlinHuntsman and headquartered in The Woodlands, Texas, will be led by Olin CEO Ken Lane. Huntsman CEO Peter Huntsman will assume the role of non-executive chairman. The deal, projected to close in the first half of 2027, will result in Olin shareholders owning approximately 54.5% of the combined company and Huntsman shareholders holding 45.5%.