Chemical producer Olin announced Tuesday it has agreed to purchase fellow U.S. chemical company Huntsman in an all-stock transaction worth roughly $2.43 billion, bringing together two major industry players as chemical companies look to grow larger and cut costs in a difficult business climate.
According to the terms of the deal, Huntsman shareholders will receive 0.5476 shares of Olin stock for every share they currently hold. Based on Huntsman’s 175.35 million shares outstanding, that works out to a deal value of approximately $2.43 billion. The implied price per share comes to $13.85 — about 12.8% less than Huntsman’s most recent closing price. Following the announcement, Huntsman shares tumbled 13%, while Olin shares slipped 2.4% during morning trading.
The broader chemical industry has been under pressure as demand has remained flat, production costs in Europe have climbed, and regulatory requirements continue to shift. Adding to those challenges, the closure of the Strait of Hormuz — a result of heightened regional tensions since late February — has disrupted the flow of oil and petrochemical products, tightening global supply and driving up prices for plastics and polymers.
Together, the two companies would generate more than $12 billion in combined annual revenue and are projected to achieve over $400 million in savings through operational efficiencies. The combination pairs Olin’s manufacturing strengths — including chlorine and caustic soda production — with Huntsman’s expertise in downstream products and chemical formulations, boosting vertical integration and reducing feedstock costs.
During a conference call with investors, company executives stated that Olin’s ammunition brand, Winchester, will stay a central part of the new company’s portfolio and serve as a foundation for future growth, benefiting from the combined company’s supply chain efficiencies. Executives also highlighted opportunities in the epoxy market, noting that the merged company could compete in sectors that were previously out of reach for either company individually.
The newly combined business will operate under the name OlinHuntsman and will be headquartered in The Woodlands, Texas. Olin’s current Chief Executive Ken Lane will lead the company, while Huntsman’s CEO Peter Huntsman will take on the role of non-executive chairman.
If the deal closes as planned in the first half of 2027, Olin shareholders will hold approximately 54.5% of the combined company, with Huntsman shareholders owning the remaining 45.5%.
