On August 25, U.S. chlor-alkali producer Olin and polyurethane company Huntsman announced that their respective shareholders had overwhelmingly approved the previously announced all-stock merger plan.
At Olin's special shareholder meeting, approximately 97% of votes cast supported the transaction, while Huntsman saw about 99% of votes cast in favor.
The combined company will be named OlinHuntsman, with projected annual revenue of approximately $12.5 billion and a market capitalization exceeding $12 billion. The transaction is expected to close in the first half of 2027. Olin shareholders will hold 54.5% of the new company, with Huntsman shareholders owning 45.5%.
Olin CEO Ken Lane will serve as CEO of the new company, while Huntsman Chairman and CEO Peter Huntsman will take on the role of Non-Executive Chairman of the Board. The companies expect the merger to deliver over $400 million in cost synergies and integration benefits.
This merger is a natural progression, stemming from the complementary nature of the two companies' long-term business footprints. However, from the transaction structure, control of the new company — in terms of both equity arrangements and management appointments — actually tilts in favor of Olin. Huntsman's persistently pressured operating performance in recent years has left it with less bargaining leverage to secure an equal footing in the negotiations.
In 2025, Huntsman reported revenue of $5.683 billion, down 5.8% year-over-year, with a net loss attributable to shareholders of $284 million, as losses continued to widen. The company's core polyurethane business, accounting for approximately 65% of total revenue, saw adjusted EBITDA decline 40% year-over-year, with average MDI selling prices falling 11% year-over-year and price declines accelerating further in the fourth quarter.
Amid the industry downturn, Huntsman has been continuously adjusting its business structure. The company closed several downstream polyurethane plants in Germany and the UK, scaled back its maleic anhydride operations in Europe, and implemented workforce reductions. In June 2026, it also sold its Italian Gomet automotive aftermarket business for €42.5 million.
At the same time, Huntsman has long faced a value-chain shortfall: MDI production requires chlorine as a key raw material, which is primarily sourced from chlor-alkali facilities. Unlike competitors such as BASF and Dow that have integrated chlor-alkali capabilities, Huntsman has long relied on external procurement, leaving its feedstock costs vulnerable to market volatility.
Olin, as a major global chlor-alkali producer, possesses large-scale chlor-alkali capacity and a low-cost advantage. Yet the chlor-alkali industry itself faces a supply-demand matching challenge.
Chlor-alkali production employs an electrolytic process that simultaneously generates chlorine, caustic soda, and hydrogen in fixed proportions. Among these, chlorine is difficult to store for extended periods and must be absorbed by downstream customers. If chlorine demand softens, plant operations are constrained even when caustic soda markets remain robust.
Post-merger, Olin's excess chlorine can be directly and reliably supplied to Huntsman's production lines, enabling the bundled chlorine and caustic output to be absorbed through multiple downstream channels simultaneously. Huntsman will gain a stable, low-cost internal chlorine supply, closing a critical value-chain gap.
The companies expect to achieve approximately $300 million in synergy benefits within three years of closing, primarily from operational and administrative cost optimizations. As existing feedstock supply agreements gradually expire, an additional roughly $100 million in synergy potential is expected to be unlocked by 2031.
