The combined entity, OlinHuntsman Corporation, would generate more than $400 million in cost savings and $125 million in cash tax benefits.
- Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share.
- Olin’s current chief executive, Ken Lane, will assume the top job at the new company, and Peter Huntsman will serve as non-executive chairman of the board.
- The new 10-member board will have equal representation of five directors from each side, including the CEOs of both companies.
Huntsman Corporation (HUN) and Olin Corporation (OLN) announced on Tuesday that they would merge in an all-stock transaction to create a giant in the North American specialty chemicals industry, with combined-company annual revenue exceeding $12 billion in 2025.
At the time of writing, HUN stock was down more than 11% in premarket trading, while Olin was down about 1%.
The combined entity, OlinHuntsman Corporation, would be headquartered in Texas and generate more than $400 million in cost savings, with a major portion realized within the first two years after the deal closes. It will also generate $125 million in cash tax benefits.
The deal brings together the companies’ complementary businesses, notably Huntsman’s portfolio of polyurethane systems, formulation technologies, and advanced materials, with Olin’s chemical manufacturing and feedstock capabilities, including chlorine and caustic soda, among other things.
“As our industry continues to globalize, we compete more today against countries than companies, trade policies, and global supply chains than ever before,” said Huntsman CEO Peter Huntsman. “This merger of equals takes two great companies and creates a much stronger global leader.”
As part of the combination, Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share. Olin shareholders will own the majority of the merged entity, with a 54.5% stake, while Huntsman shareholders will own the rest. According to calculations done by Reuters, the deal has an equity value of $2.43 billion, based on Olin’s last closing price on Monday.
Olin’s current Chief Executive Officer, Ken Lane, will assume the top job at the new company, and Peter Huntsman will serve as non-executive chairman of the board. Huntsman Chief Financial Officer Phil Lister will become the new CFO of the combined company, and Olin CFO will become the Chief Integration Officer of OlinHuntsman.
The new 10-member board will have equal representation of five directors from each side, including the CEOs of both companies.
The deal is expected to close in the first half of next year.
On Stocktwits, retail sentiment toward OLN remained in ‘bearish’ territory, while it was ‘bullish’ on HUN over the last 24 hours.
OLN stock is up more than 21% so far this year, while HUN has surged 59%, outperforming the S&P 500.
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