A new US chemical major will emerge following the all-stock ‘merger of equals’ of Olin and Huntsman which will create a $12 billion combined company - and generate over $400m in cost synergies and integration benefits.
The new corporation, OlinHuntsman, will bring together the two companies’ complementary upstream and downstream businesses, thereby offering ‘cost-advantaged North American assets and feedstocks with differentiated formulations and high-value advanced materials,’ the companies said.
Together Olin and Huntsman would have 2025 revenue of approximately $12.5 billion on a combined company basis.
'Complementary portfolios and enhanced geographic footprint, including a significant presence in the US Gulf Coast, will position OlinHuntsman to capitalize on regional sector dynamics. This, along with its presence in Europe and Asia, will enable it to better serve customers across key markets,’ the companies said.
The deal will combine Olin's manufacturing and feedstock capabilities, including chlorine and caustic soda, with Huntsman's downstream products and formulation expertise.
‘This platform will enable OlinHuntsman to grow with customers at multiple points in the value chain, utilize lower-cost producer economics to drive value globally and improve margins and cash flow through a more efficient operating model,’ the companies said.
In addition to lower costs, the companies said the merger will allow them to offer an expanded ability to convert ‘advantaged electrochemical units production into downstream materials.
‘This combination provides a compelling opportunity for Olin and Huntsman to create a more resilient and values-focused chemical company,’ said Ken Lane, Olin president and CEO, who becomes CEO of the merged corporation.
Lane added: ‘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-chin, generate stronger cash flow across the cycle and pursue opportunities that neither business could full capture on its own.’
Peter Huntsman, chairman, president and CEO of Huntsman, who becomes non-executive chairman of the new company, said: ‘As our industry continues to globalize, we compete more today against countries, than companies, trade policies and global supply chains than ever before. The opportunities the merger creates enable us to generate greater value for our shareholders, deliver exceptional service and products to our customers and provide greater stability and opportunities for our associates.’ ‘This merger of equals takes two great companies and creates a much stronger global leader,’ added Huntsman.
Huntsman was founded in 1982 by Peter Huntsman’s father, Jon Huntsman, by combining assets from other major chemical concerns, including polymer and organic chemical businesses such as linear alkyl benzene and maleic anhydride from majors such as Texaco, Monsanto and Goodyear. In 1999, Huntsman nearly doubled in size with the acquisition of the polyurethanes, titanium dioxide, aromatics and other petrochemicals businesses of ICI. Under Peter Hunstman as CEO, the company continued to expand its polyurethanes business through multiple acquisitions, which also include textile effects products from, for example, Ciba Geigy.
Olin was founded over 130 years ago in 1892 and grew to become the top global chlorine producer and a manufacturer of chlorinated, epoxy and vinyl organic products.
Olin and Huntsman have identified more than $300 million of cost synergies and integration benefits, with the vast majority realized within 24 months and all expected by the end of year three. The companies have also identified an additional $100 million of raw material integration benefits starting in 2031. The transaction is expected to close in the first half of 2027.
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