Huntsman and Olin Agree $2.43 Billion All-Stock Merger to Form $12B Specialty Chemicals Giant
HUN•Huntsman will receive 0.5476 Olin shares per share in an all-stock merger forming OlinHuntsman, with over $12 billion in combined 2025 revenue, $400 million in cost synergies and $125 million in tax benefits. Olin shareholders will own 54.5% and Huntsman 45.5% of the Texas-headquartered company led by CEO Ken Lane.
1. Merger Details
Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share, creating a merged entity valued at $2.43 billion in equity based on recent closing prices. Olin investors will hold a 54.5% ownership stake while Huntsman investors control 45.5%.
2. Financial Impact
The combined company is projected to generate over $12 billion in annual revenue by 2025 and deliver more than $400 million in cost synergies, with a major portion realized within two years. An additional $125 million in cash tax benefits is expected from integrating the two operations.
3. Leadership and Governance
Ken Lane will serve as CEO of the new OlinHuntsman, with Peter Huntsman as non-executive chairman. The 10-member board will feature equal representation from both companies, and Phil Lister will become CFO of the merged entity.
4. Market Reaction
In premarket trading following the merger announcement, Huntsman shares fell roughly 11% while Olin shares declined about 1%, reflecting investor reassessment of the combined company’s valuation and integration risks.
