Huntsman Corporation (NYSE:HUN) shares traded lower on Tuesday after the company announced an all-stock merger-of-equals with Olin Corporation (NYSE:OLN).
The combined business, OlinHuntsman Corp., will have about $12.5 billion in combined revenue and over $400 million in identified benefits.
Huntsman And Olin Merger: What Investors Need To Know
Under the agreement, Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share. After closing, Olin shareholders will own about 54.5% of OlinHuntsman, while Huntsman shareholders will own about 45.5%.
The chemical companies expect more than $300 million in synergies from purchasing, raw material integration, operations optimization, and SG&A savings, with most expected within 24 months and all by the end of year three.
They also expect an additional $100 million in raw-material-integration benefits starting in 2031, and about $125 million in cash tax benefits from accelerated net operating losses.
Strategic Rationale And Synergies
The deal would combine Olin’s chlorine, caustic soda, and feedstock capabilities with Huntsman’s polyurethane systems, formulations, and advanced materials.
The companies said the structure should improve margins, cash flow, and flexibility across the value chain.
Olin CEO Ken Lane will serve as CEO of Woodlands, Texas-based OlinHuntsman. Huntsman CEO Peter Huntsman will become non-executive chairman, Huntsman CFO Phil Lister will serve as CFO, and Olin CFO Todd Slater will serve as chief integration officer.
Leadership And Closing Timeline
The transaction has been unanimously approved by both boards and is expected to close in the first half of 2027.
Lane said the merger would create “a more resilient and value-focused chemicals company anchored in North America,” with stronger cash flow and opportunities neither company could capture on its own.
Peter Huntsman said the merger “takes two great companies and creates a much stronger global leader.” He added that the exchange ratio is based on 30-day volume-weighted average prices as of June 12, 2026.
HUN Earnings Preview And Wall Street Analyst Targets
Huntsman is slated to provide its next financial update on July 30, 2026 (estimated).
- EPS Estimate: 5 cents (Up from a loss of 20 cents)
- Revenue Estimate: $1.59 billion (Up from $1.46 billion)
Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $13.86. Recent analyst moves include:
- Morgan Stanley: Equal-Weight (Raises Target to $15.00) (May 5)
- Wells Fargo: Equal-Weight (Raises Target to $14.00) (May 5)
- Citigroup: Neutral (Raises Target to $16.00) (May 4)
HUN Price Action
Huntsman shares were down 5.73% at $14.98, and OLN were up 7.51% at $27.20 during premarket trading on Tuesday, according to Benzinga Pro data.
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