Olin Corporation will acquire Huntsman in an all-stock transaction valued at approximately $2.43 billion, the companies announced on Tuesday, merging two U.S. chemicals manufacturers as the industry contends with sluggish demand and rising costs.
Under the terms of the agreement, Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share they hold. That exchange ratio, applied to Huntsman’s 175.35 million shares outstanding as reported in LSEG data, produces an implied offer value of about $2.43 billion. The transaction implies a per-share price of $13.85 for Huntsman shares, roughly 12.8% below Huntsman’s most recent closing price.
Market reaction was negative in early trading: Huntsman shares fell 13%, while Olin shares declined 2.4% in morning sessions.
The deal is positioned as a response to sector-wide headwinds. Executives cited stagnant demand, rising production costs in Europe and evolving regulatory requirements as pressures reshaping strategy across global chemical producers. They also pointed to disruptions in energy and petrochemical flows following the closure of the Strait of Hormuz since late February, which has tightened supply and pushed up prices for plastics and polymers.
Management expects the combination to yield a company with annual revenues in excess of $12 billion and to produce more than $400 million in cost synergies. The strategic rationale centers on combining Olin’s manufacturing scale and feedstock capabilities - including chlorine and caustic soda - with Huntsman’s downstream product set and formulation expertise. Company statements say that increased vertical integration should reduce feedstock costs and improve competitive positioning.
Executives also discussed business-unit implications. Olin’s ammunition division, Winchester, will remain a core part of the combined portfolio and is expected to serve as a platform for future growth, leveraging supply-chain efficiencies arising from the merger. Management noted particular opportunity in epoxy, where the combined company believes it can compete in certain industries it previously could not serve.
The merged entity will operate under the name OlinHuntsman and will be headquartered in The Woodlands, Texas. Olin Chief Executive Ken Lane will serve as chief executive of the combined company, while Huntsman Chief Executive Peter Huntsman will take on the role of non-executive chairman. Following closing, Olin shareholders are projected to own approximately 54.5% of OlinHuntsman, with Huntsman shareholders holding the remaining 45.5%.
The transaction is expected to close in the first half of 2027.
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