Olin and Huntsman to merge

Olin and Huntsman have entered into a definitive agreement to combine in an all-stock merger of equals that will create a new player with sales of about $12 billion/year. Both boards have approved and the deal is expected to close in Q12027, subject to customary closing conditions, regulatory approvals and the approval of both sets of shareholders.

OlinHuntsman, the two firms said, “will benefit from enhanced scale, scope and expanded chlorine optionality, enabling it to create value across markets and cycles”. They added that the integration of their respective upstream and downstream businesses “brings together cost-advantaged North American assets and feedstocks with differentiated formulations and high-value advanced materials”. 

Over $300 million of cost synergies and integration benefits have already been identified that will be realised within three years. The companies have also identified an additional $100 million of raw material integration benefits from 2031 and about $125 million of cash tax benefits through the acceleration of net operating losses.

Key target markets include automotive, construction and infrastructure, and industrial applications. OlinHuntsman claims that it will have a structurally lower cost position and an expanded ability to convert advantaged electrochemical units production into downstream materials, unlocking more opportunities to grow.

Ken Lane, president and CEO of Olin, will be CEO of the new firm, with Huntsman CEO Peter Huntsman becoming non-executive chairman. Current Huntsman CFO Phil Lister will be CFO of the combined company; Olin CFO will become the chief integration officer. There will be a ten-member board, with five from each company.