Olin Corp. and Huntsman Corp. on Tuesday announced they have agreed to combine in an all-stock deal that will create a North American chemicals company with combined revenue of about $12.5 billion last year, the companies said in a joint statement.
Under the terms of the agreement, Olin will issue 0.5476 shares for each outstanding share of Huntsman. The exchange ratio implies that Olin shareholders will own roughly 54.5% of the combined enterprise, with Huntsman investors holding the remaining 45.5%.
Based on Olin’s closing share price of $25.30 on Monday, the deal values Huntsman at approximately $13.85 a share — nearly 13% below Huntsman’s Monday close of $15.89. Investors reacted to the below-market valuation in premarket trading Tuesday: Huntsman shares fell 10% to $14.28, while shares of Clayton, Mo.-based Olin slipped 1% to $25.05, the companies said.
The combined company will operate as OlinHuntsman upon completion of the deal, which the companies said is slated to close in the first half of 2027, subject to regulatory clearances and approval by shareholders of both companies. The transaction will consolidate Olin’s chlor-alkali and epoxy resin manufacturing operations with Huntsman’s specialty chemicals and advanced materials businesses, which are headquartered in The Woodlands, Texas.
The merger is the latest in a series of tie-ups reshaping the U.S. chemicals and manufacturing sectors this year.