Olin Corporation OLN and Huntsman Corporation HUN have inked a definitive agreement to combine in an all-stock merger of equals, creating a new company that will be named OlinHuntsman Corporation. The transaction will establish a leading North American integrated chemical producer, with combined 2025 revenues of approximately $12.5 billion and a broader global manufacturing footprint spanning North America, Europe and Asia.
The merger brings together Olin's large-scale chlor-alkali and feedstock capabilities with Huntsman's specialty downstream products, polyurethane systems and advanced materials businesses. Management expects the combination to create a stronger, more resilient company with enhanced scale, improved cost competitiveness and greater flexibility to serve customers across multiple end markets.
Transaction Details
Per the deal terms, Huntsman shareholders will receive 0.5476 shares of Olin for each HUN share they own. Following completion of the transaction, existing Olin shareholders are expected to own approximately 54.5% of the combined company, while Huntsman shareholders will hold the remaining 45.5%.
The exchange ratio was determined using the companies' trailing 30-day volume-weighted average share prices as of June 12, 2026. Per Huntsman, the structure provides a premium to Huntsman shareholders while maintaining fairness for Olin investors by reducing the impact of recent market volatility.
The boards of both companies have unanimously approved the deal. The transaction is expected to close in the first half of 2027, subject to shareholder approvals, regulatory clearances and other customary closing conditions.
Benefits of the Merger
The combined company will become a $12 billion-plus North American chemicals leader, supported by a significant manufacturing presence along the U.S. Gulf Coast and additional operations in Europe and Asia.
Olin's Winchester ammunition business will remain a key operating segment within OlinHuntsman, continuing to serve sporting, law enforcement and military customers.
The merger combines Olin's cost-advantaged chlorine, caustic soda and electrochemical unit production capabilities with Huntsman's higher-value downstream formulations and specialty products. This vertical integration is expected to improve operating efficiency, strengthen margins and provide more opportunities to convert low-cost feedstocks into value-added materials.
Olin and Huntsman have identified more than $400 million of total cost synergies and integration benefits. These include more than $300 million of cost synergies from purchasing efficiencies, raw material integration, operational optimization and SG&A savings. Most of these benefits are expected to be realized within 24 months, with full realization anticipated by the end of the third year following the merger. An additional $100 million of raw material integration benefits is expected beginning in 2031. The combined company also expects to generate approximately $125 million of cash tax benefits through the accelerated utilization of net operating losses.
Per Olin’s president and CEO Ken Lane, who will serve as the CEO of OlinHuntsman, the transaction combines Huntsman's differentiated formulations and advanced materials capabilities with Olin's world-scale chemical assets to create a company with greater flexibility, stronger cash generation and the ability to pursue opportunities that neither company could fully capture independently.
Per Huntsman, the merger creates a stronger global competitor capable of delivering greater value to shareholders, customers and employees under the current scenario of increasing globalization, changing trade policies, and evolving supply chains.
Shares of OLN have gained 22.5% while HUN is up 26.1% in the past year compared with the industry’s 10% rise.
Zacks Rank & Key Picks
Both OLN and HUN carry a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Nucor Corporation NUE and L.B. Foster Company FSTR. NUE and FSTR carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NUE’s current-year earnings stands at $15.71 per share, implying a 103.8% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.1%.
The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with the average surprise being 3.62%.
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Nucor Corporation (NUE): Free Stock Analysis Report
L.B. Foster Company (FSTR): Free Stock Analysis Report
Huntsman Corporation (HUN): Free Stock Analysis Report
Olin Corporation (OLN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).