Olin Corporation and Huntsman Corporation signed a definitive agreement for an all-stock merger of equals. The combined company, OlinHuntsman, will have a market value exceeding $12 billion. The new entity will be headquartered in The Woodlands, Texas.
Huntsman shareholders will receive 0.5476 Olin shares for each share they own. Olin shareholders will control approximately 54.5% of the new company. Huntsman shareholders will hold the remaining 45.5%.
The companies identified over $400 million in annual cost synergies and integration benefits. They expect to realize the majority of these savings within the first two years. The combination integrates Olin’s upstream chlorine feedstocks with Huntsman’s downstream product formulations.
The strategic merger targets end markets such as automotive, construction, and infrastructure. Huntsman shares fell in pre-market trading following the announcement. The fixed exchange ratio implies a deal value below the stock's recent 52-week high.