US chemical peers Olin, Huntsman announce all-stock merger

(Sharecast News) - US chemicals producers Olin and Huntsman have announced an all-stock merger to create a $12.5bn North American market leader, which they claim will generate "significant value" for both sets of shareholders. In a statement on Tuesday, the NYSE-listed firms outlined plans to rebrand as OlinHuntsman Corporation, benefitting from "enhanced scale, scope and expanded chlorine optionality".

The combination of Olin and Huntsman's highly complementary upstream and downstream businesses is expected to result in more than $400m of identified cost synergies and integration benefits.

"OlinHuntsman will have a structurally lower cost position and an expanded ability to convert advantaged Electrochemical Units production into downstream materials, unlocking more opportunities to grow," the firms said in a joint statement.

Based on 2025 revenues, the combined company will generate sales of $12.5bn and benefit from a greater geographic footprint, including a significant presence in the US Gulf Coast, along with Europe and Asia.

The new company will be headed up by current Olin chief executive Ken Lane, while Hunstman's CEO Peter Huntsman will serve as the chairman of the board.

"This combination provides a compelling opportunity for Olin and Huntsman to create a more resilient and value-focused chemicals company anchored in North America," Lane said in the statement.

"Huntsman has built an impressive portfolio of polyurethane systems, formulation technologies and advanced materials serving technical, application-driven end markets. By integrating those capabilities with Olin's world-scale chemicals assets and operations and identified synergies and benefits, we will create an industry leader with greater flexibility to serve customers across the value chain, generate stronger cash flow across the cycle and pursue opportunities that neither business could fully capture on its own."

Olin shares were up 2.6% in pre-market trading, while Hunstman dropped 8.8%.