The planned merger of Olin and Huntsman is expected to create a new chemical company under the name “OlinHuntsman.” Both companies have entered into a binding agreement for a merger in the form of an all-stock transaction. The goal is to create an integrated North American chemical company with expected revenue of approximately $12.5 billion in 2025. The transaction is expected to close in the first half of 2027.
“OlinHuntsman” to improve cost position
As part of the planned merger, Olin’s upstream production and raw material capacities will be combined with Huntsman’s downstream product and formulation expertise. This is expected to enable the combined company, “OlinHuntsman,” to strengthen its position in chlorine, caustic soda, polyurethane systems, formulation technologies, and high-performance materials, among other areas.
According to both companies, the vertical integration is expected to improve the cost position and create additional opportunities to transition production from electrochemical units to downstream materials. The company plans to serve applications in the automotive industry, construction, infrastructure, and other industrial sectors, among others.
More than $400 million in synergies expected
Olin and Huntsman estimate the identified cost synergies and integration benefits at more than $400 million. Of this amount, more than $300 million is expected to come primarily from procurement, raw material integration, operational optimizations, and savings in administration and sales. The majority of these savings are expected to be realized within 24 months, with full realization by the end of the third year. An additional $100 million in benefits from raw material integration is expected starting in 2031. In addition, the future company anticipates approximately $125 million in tax liquidity benefits through the accelerated utilization of tax loss carryforwards.
“OlinHuntsman” management team confirmed
Upon completion of the transaction, Ken Lane, currently President and Chief Executive Officer of Olin, is set to take the helm of “OlinHuntsman.” Peter Huntsman, currently Chairman, President, and Chief Executive Officer of Huntsman, is set to become non-executive Chairman of the Board of Directors. Phil Lister, currently Chief Financial Officer of Huntsman, is slated to serve as Chief Financial Officer of the merged company. Ken Lane emphasizes that the merger offers the opportunity to create a more resilient and value-driven chemical company with a focus on North America. Peter Huntsman explains that the industry is increasingly competing across global supply chains, trade policies, and national borders. The merger is therefore intended to create greater stability and new opportunities for customers, employees, and shareholders.
The board of directors of the future company is to consist of ten members, with equal representation from both companies. The headquarters of “OlinHuntsman” is planned to be located in The Woodlands, Texas. The transaction was unanimously approved by the boards of directors of both companies. It remains subject to customary closing conditions, including regulatory approvals and the approval of shareholders of both companies.
