Olin and Huntsman Announce All-Stock Merger of Equals, Combined Revenue ~$12.5B
Olin (OLN) and Huntsman (HUN) have agreed to a merger of equals — an all-stock, no-cash deal that creates OlinHuntsman Corporation with roughly $12.5B in combined 2025 revenue. HUN dropped ~10% premarket on the news.
Bottom line: Olin (OLN) and Huntsman (HUN) have signed a definitive agreement to merge in an all-stock "merger of equals." Huntsman shareholders will receive 0.5476 shares of Olin per share held. The combined company, to be renamed OlinHuntsman Corporation, would have had roughly $12.5B in 2025 revenue. Per CNBC, HUN fell ~10% premarket on the announcement.
- Structure: All-stock merger of equals, no cash consideration; combined entity renamed OlinHuntsman Corporation.[SEC]
- Exchange ratio: 0.5476 Olin shares per Huntsman share, based on the 30-day VWAP through June 12.
- Ownership split: Olin shareholders ~54.5%; Huntsman shareholders ~45.5%.
- Scale: ~$12.5B in combined 2025 revenue, with Huntsman's continuing operations contributing ~$6.0B.
- Price action: Per CNBC premarket coverage, HUN fell ~10% and OLN fell ~1% before the open.[CNBC]
Olin (OLN) and Huntsman (HUN) jointly announced on June 16 that they have signed a definitive agreement to combine in an all-stock merger of equals. There is no cash component. The merged company will operate under the name OlinHuntsman Corporation and will be headquartered in The Woodlands, Texas. Both companies confirmed the agreement was signed on June 15.
All-Stock Deal, Olin Holders Take the Majority
Under the terms of the agreement, the exchange ratio is fixed: Huntsman shareholders will receive 0.5476 shares of Olin for each Huntsman share they own. Both companies stated the ratio was set based on the market value implied by each company's 30-day volume-weighted average price (VWAP) through June 12.[SEC]
The resulting ownership structure:
- Existing Olin shareholders will own approximately 54.5% of the combined company
- Existing Huntsman shareholders will own approximately 45.5%
- No cash consideration — purely a stock-for-stock transaction
Neither company disclosed an explicit premium percentage. Huntsman characterized the exchange ratio as representing a premium to Huntsman shareholders relative to historical average levels. On the advisory side, Lazard is acting as financial advisor to Olin; Citi and Morgan Stanley are advising Huntsman.[SEC]
~$12.5B in Revenue, $400M+ Synergy Target
On a combined 2025 basis, the new company would generate roughly $12.5B in revenue, with Huntsman's continuing operations contributing approximately $6.0B of that. These figures reflect the companies' own pro forma calculations, not a transaction price.
On synergies, the companies outlined the following targets:
- More than $300M in cost synergies, the majority expected within 24 months and all realized by year three
- An additional ~$100M in raw material procurement savings beginning in 2031
- Combined synergy target exceeds $400M
- Approximately $125M in cash tax benefits from net operating loss (NOL) carryforwards
On leadership: Olin's current CEO Ken Lane will become CEO of the combined company; Peter Huntsman will serve as non-executive chairman; and Huntsman's current CFO Phil Lister will become CFO. The new board will have 10 directors, nominated equally by both sides.[SEC]
HUN Drops ~10% Premarket, OLN Slips ~1%
Both stocks moved lower when the deal was announced. According to CNBC's premarket coverage on June 16, HUN fell roughly 10% before the open while OLN was down around 1%. Official closing figures for that session have not been confirmed as of publication; these figures reflect premarket trading only.[CNBC]
On timing, the companies laid out the following:
- The transaction is expected to close in the first half of 2027
- Subject to regulatory approvals
- Subject to shareholder votes at both Olin and Huntsman
In other words, there's roughly a year between announcement and expected close — with shareholder votes and regulatory review still to come.
Management Quotes and Closing Conditions
Both sides weighed in at the announcement. Olin CEO Ken Lane said: "This combination creates a compelling opportunity for Olin and Huntsman to build a more resilient, value-oriented chemical company rooted in North America." Peter Huntsman added: "This merger of equals brings two great companies together to create a stronger global leader."[SEC]
The key facts from the company announcements, summarized:
- All-stock merger of equals, no cash; combined entity to be named OlinHuntsman
- Exchange ratio: 0.5476 Olin shares per Huntsman share; Olin holders ~54.5%, Huntsman holders ~45.5%
- Combined 2025 revenue ~$12.5B; total synergy target exceeds $400M
- Requires shareholder and regulatory approval; expected to close H1 2027
- Per CNBC premarket data: HUN –~10%, OLN –~1%
This article summarizes company filings and public reporting only and does not constitute investment advice or a recommendation on Olin (OLN), Huntsman (HUN), or any other security.
Sources
This content is for informational purposes only and does not constitute investment advice, trading advice, or any guarantee of returns.
