Level 1 - Absolute Beginner
Two big American chemical companies are joining together. Olin and Huntsman have agreed to become one company. The new company will be called OlinHuntsman.
Together, the two companies make $12.5 billion each year. Olin makes cleaning chemicals and bullets. Huntsman makes plastics and other materials.
The deal will finish in the first half of 2027. Both companies need their owners and governments to say yes first.
- merge
- when two companies join to become one
- chemical
- a substance made in a factory or lab
- billion
- one thousand million (1,000,000,000)
- deal
- an agreement between two sides
- owners
- people or groups who have shares in a company
- plastics
- man-made solid materials used in many products
- revenue
- the total money a company earns
- equal
- the same in size or importance
Level 2 - Elementary
Two major American chemical companies, Olin Corporation and Huntsman Corporation, have announced a merger of equals. The combined company will be named OlinHuntsman and will have combined revenues of about $12.5 billion per year.
In the deal, Olin shareholders will own 54.5% of the new company, and Huntsman shareholders will own 45.5%. Olin is known for making chlorine-based chemicals and Winchester ammunition. Huntsman makes polyurethane foams and other specialty materials.
The companies expect to save more than $400 million per year through cost synergies. The deal is expected to close in the first half of 2027, after approval from shareholders and regulators.
- merger
- when two companies combine into one new company
- shareholder
- a person who owns shares in a company
- synergy
- extra benefit gained when two groups work together
- regulator
- a government body that controls an industry
- ammunition
- bullets and shells used in weapons
- polyurethane
- a flexible plastic material used in foam and coatings
- approval
- official permission for something to happen
- combined
- put together from two or more parts
Level 3 - Intermediate
Olin Corporation and Huntsman Corporation announced a major all-stock merger of equals on June 16, 2026, creating a new chemical industry giant to be called OlinHuntsman. The combined entity will have pro forma 2025 revenues of approximately $12.5 billion, making it one of the largest diversified chemical companies in North America.
Under the terms of the agreement, Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share. This exchange ratio gives Olin shareholders a 54.5% stake and Huntsman shareholders a 45.5% interest in the new company. The deal is structured to generate more than $400 million in annual cost synergies, with combined adjusted EBITDA projected at $1.3 billion including those synergies.
Olin brings its chlor-alkali chemicals business and its iconic Winchester ammunition brand. Huntsman contributes polyurethanes, maleic anhydride, acrylics, and epoxy resins. The merger must receive approval from both companies' shareholders and pass regulatory review in multiple jurisdictions, with a target closing in the first half of 2027.
- all-stock
- a deal paid entirely in shares, not cash
- pro forma
- financial figures calculated as if the merger had already happened
- exchange ratio
- the number of shares in the new company given for each old share
- EBITDA
- earnings before interest, taxes, depreciation, and amortisation - a measure of profit
- chlor-alkali
- relating to the industrial process of making chlorine and sodium hydroxide
- jurisdiction
- an area where a particular law or authority applies
- diversified
- spread across many different types of products or markets
- stake
- a share of ownership in a company
Level 4 - Advanced
On June 16, 2026, Olin Corporation and Huntsman Corporation unveiled a transformative all-stock merger of equals that will create OlinHuntsman, a diversified chemical company with pro forma 2025 revenues of approximately $12.5 billion. The transaction is framed as a strategically complementary combination: Olin's chlor-alkali and Winchester ammunition platforms mesh with Huntsman's downstream specialty portfolio spanning polyurethanes, maleic anhydride, acrylics, and epoxy resins.
Under the definitive agreement, Huntsman shareholders will receive a fixed exchange ratio of 0.5476 newly issued Olin shares per Huntsman share, implying a split of roughly 54.5% for Olin stockholders and 45.5% for Huntsman's base. Management projects run-rate cost synergies exceeding $400 million annually, lifting pro forma adjusted EBITDA to approximately $1.3 billion. Synergy realisation is expected within 36 months of closing, with procurement rationalisation and shared-services consolidation named as the primary levers.
The deal requires approval from both companies' shareholders and antitrust clearance across several jurisdictions, including the United States and European Union. Completion is targeted for the first half of 2027. Analysts have noted that the merger positions OlinHuntsman to compete more effectively with global chemical giants such as Dow, BASF, and LyondellBasell, while the combined balance sheet provides greater capacity for capital investment and portfolio rationalisation.
- transformative
- causing a major and lasting change
- complementary
- combining in a way where each part improves the other
- definitive agreement
- a final, binding legal contract between two parties
- run-rate
- an annualised projection based on current performance data
- procurement
- the process of obtaining goods and services, especially for a business
- antitrust
- laws preventing monopolies and promoting competition
- rationalisation
- reorganising a business to make it more efficient, often reducing duplication
- downstream
- relating to processes or products further along a supply chain from raw materials
