M&As: Olin/Huntsman to combine to create US$12 bn chemical firm
Chemical firms Olin Corporation and Huntsman Corporation have entered into a definitive agreement to combine in an all-stock merger of equals to create a US$12.5 billion chemical company named OlinHuntsman Corporation, following the close of the transaction. The tie-up combines Olin's upstream chlor-alkali and feedstock capabilities with Huntsman's downstream polyurethanes, advanced materials, and specialty chemicals.
The transaction is expected to generate significant value for shareholders of both companies, with more than US$400 million in total identified cost synergies and integration benefits.
The combined firm will benefit from enhanced scale, scope and expanded chlorine optionality, enabling it to create value across markets and cycles.
The vertical integration of Olin and Huntsman's complementary upstream and downstream businesses brings together cost-advantaged North American assets and feedstocks with differentiated formulations and high-value advanced materials. From its global manufacturing platform, OlinHuntsman will deliver to diverse and growing end markets including automotive, construction and infrastructure, and industrial applications. It will also have a structurally lower cost position and an expanded ability to convert advantaged Electrochemical Units production into downstream materials, unlocking more opportunities to grow.
Together Olin and Huntsman would have 2025 revenue of approximately US$12.5 billion on a combined company basis. Complementary portfolios and enhanced geographic footprint, including a significant presence in the US Gulf Coast, will position OlinHuntsman to capitalise on regional sector dynamics. This, along with its presence in Europe and Asia, will enable it to better serve customers across key markets. Olin's ammunition business, Winchester, will continue to operate as a key business within the combined company, growing its industry-leading brand and deepening its long-term relationships with sporting, law enforcement and military customers.
The transaction will combine Olin's manufacturing and feedstock capabilities, including chlorine and caustic soda, with Huntsman's downstream products and formulation expertise. This platform will enable OlinHuntsman to grow with customers at multiple points in the value chain, utilise lower-cost producer economics to drive value globally and improve margins and cash flow through a more efficient operating model.
Olin and Huntsman have identified more than US$300 million of cost synergies and integration benefits, with the vast majority realised within 24 months and all expected by the end of year three. These synergies will be driven by purchasing and raw material integration, optimisation of operations and SG&A savings.
The companies have also identified an additional US$100 million of raw material integration benefits starting in 2031. In addition to the US$400M+ synergies, OlinHuntsman expects to realise approximately US$125 million of cash tax benefits through the acceleration of Net Operating Losses.
Upon closing of the transaction by 2027, OlinHuntsman will be headquartered in The Woodlands, Texas.
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