Olin Corporation

Olin Corporation and Huntsman Corporation have received overwhelming shareholder approval for their all-stock merger of equals, creating OlinHuntsman Corporation, a leading North American integrated chemicals producer. At Olin's special meeting, approximately 97% of votes cast, representing 81% of outstanding shares, supported the deal, while Huntsman saw roughly 99% of votes cast, representing 75% of outstanding shares, in favor. The combined company is expected to have about $12.5 billion in 2025 revenues and a broader manufacturing footprint across North America, Europe, and Asia. The merger is projected to deliver more than $400 million in total cost synergies and integration benefits, including over $300 million from purchasing efficiencies, raw material integration, operational optimization, and SG&A savings, plus an additional $100 million in raw material integration benefits beginning in 2031 and about $125 million in cash tax benefits. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and other customary conditions.

Olin Corporation reported second-quarter adjusted earnings of 7 cents per share, in line with the Zacks Consensus Estimate, while revenue beat expectations. Revenue declined 0.9% year over year to $1,741.9 million but surpassed the consensus estimate of $1,719.6 million by 1.3%. Adjusted EBITDA rose 8.6% to $191.3 million, supported by improved chemical pricing and stronger performance in the Epoxy and Winchester segments. Epoxy sales increased 27.4% to $422.1 million and Winchester sales rose 11.8% to $500.3 million, both exceeding consensus estimates, while Chlor Alkali Products and Vinyls sales fell 16.3% to $819.5 million, missing expectations. For the third quarter of 2026, Olin expects adjusted EBITDA between $160 million and $200 million, with a roughly $20 million impact from a disruption at its Freeport vinyl chloride monomer facility.

Monteverde & Associates PC, a class action firm, is investigating four proposed mergers. Planet 13 Holdings Inc. is merging with Vireo Growth Inc., with Planet 13 shareholders expected to receive 0.015383618 shares of Vireo for each Planet 13 share. Olin Corporation is merging with Huntsman Corporation, and Olin shareholders will own approximately 54.5% of the combined company, with a shareholder vote scheduled for August 25, 2026. Huntsman Corporation is being sold to Olin Corporation, and Huntsman shareholders are expected to receive 0.5476 shares of Olin for each Huntsman share, also with a vote on August 25, 2026. First Seacoast Bancorp, Inc. is being sold to Cambridge Financial Group, Inc., and First Seacoast shareholders are expected to receive $17.25 per share in cash, with a shareholder vote scheduled for August 27, 2026.

Hotchkis & Wiley's Mid-Cap Value Fund highlighted Olin Corporation as a detractor in the second quarter of 2026, but sees a tightening North American chlor-alkali supply/demand outlook over the next five-plus years that could drive a pricing and volume recovery. The fund noted that Olin, one of the largest global producers of chlor alkali chemicals and chlorine derivatives and owner of the Winchester ammunition brand, is significantly underearning due to below-normal commodity prices and demand. As the swing producer in the region, Olin could capture more than its share of the improvement, with shareholder-friendly capital allocation and an investment-grade balance sheet commitment reinforcing the case. The stock's decline reflects an easing of Middle East tensions that will loosen near-term supply/demand dynamics, while Olin also announced a merger of equals with Huntsman that the fund views as strategically sound and likely to reduce risk through synergy capture and deleveraging. Olin shares closed at $18.62 on August 3, 2026, with a one-month return of negative 10.22% and a 52-week loss of 2.05%, giving it a market capitalization of $2.12 billion.

Huntsman Corporation reported second-quarter 2026 sales of US$1,663 million and a net loss of US$6 million, an improvement from prior losses, and declared a US$0.0875 per share cash dividend payable on September 30, 2026 to shareholders of record on September 15, 2026. The company also reaffirmed its proposed merger with Olin, highlighting an expected US$300 million in synergies and additional benefits after a key chlorine supply contract expires, reinforcing its push toward higher-margin specialty products and efficiency gains. The reaffirmed merger remains the central catalyst for Huntsman's strategy, with management emphasizing specialty products and efficiency against risks of overcapacity, weak housing demand, and high European costs.

Olin stock is trading around US$18.51 after a three-year decline of roughly 66%, yet valuation checks suggest the company screens cheaply relative to its fundamentals. The planned all-stock merger with Huntsman could support a larger chemicals platform, though a recent unplanned shutdown at a vinyl chloride monomer plant highlights operational risks. On Simply Wall St's assessment, Olin is undervalued in five of six areas, and its price-to-sales multiple of about 0.3x sits well below the Chemicals industry average of roughly 1.1x and an implied fair ratio of about 0.8x. The key question is whether the current price already reflects merger-related risks and recent losses, or if Olin still offers material upside based on its underlying valuation.

Olin reported second-quarter revenue of $1.74 billion, a 0.9% decline from a year earlier but 1.3% above the Zacks Consensus Estimate of $1.72 billion. Earnings per share came in at $0.07, matching analyst expectations and up from $0.05 in the prior-year quarter. Among its segments, Epoxy sales surged 27.5% to $422.1 million, Winchester rose 11.8% to $500.3 million, while Chlor Alkali Products and Vinyls fell 16.3% to $819.5 million. Pretax income for Winchester was $28.1 million and for Epoxy was $16 million, both exceeding analyst forecasts. The stock has gained 13.3% over the past month, compared with a 1.5% decline in the S&P 500.

The global hydrochloric acid market is projected to grow from USD 2.76 billion in 2025 to USD 5.21 billion by 2035, at a compound annual growth rate of 6.03 percent, according to a report by SNS Insider. North America held the largest revenue share in 2025 at approximately 35.1 percent, with the United States contributing 87.4 percent of that regional total. The steel pickling application segment accounted for over 36.5 percent of the market in 2025, while the oil well acidizing segment was the fastest growing. Asia Pacific is expected to be the fastest-growing regional market, registering a nearly 6.4 percent CAGR from 2026 to 2035, driven by industrialization in China and India. Key players include Olin Corporation, Occidental Petroleum Corporation, Westlake Corporation, Dow Inc., and BASF SE.

Plug Power announced the sale of a federal investment tax credit for approximately $39.2 million related to its hydrogen liquefaction facility in St. Gabriel, Louisiana. The transaction is part of the company's strategy to improve liquidity and unlock value from its domestic hydrogen generation infrastructure. The St. Gabriel plant, operated through a joint venture with Olin Corporation, was commissioned in April 2025 and is one of North America's largest hydrogen liquefaction facilities. This follows a similar $30 million tax credit transfer completed in January 2025 for the company's facility in Woodbine, Georgia. Plug Power currently maintains roughly 40 tons per day of liquid hydrogen production capacity across its operational facilities in Georgia, Tennessee, and Louisiana.

Olin Corporation shares may be undervalued by 16.3% according to a widely followed valuation narrative, which sets a fair value of $26.29 against a recent close of $22.01. The narrative hinges on structural cost reduction initiatives, including the Beyond250 program and Epoxy cost optimization, expected to deliver $70–90 million in annual run-rate savings by the end of 2025, with additional reductions from the Stade, Germany facility in 2026. These measures are projected to improve net margins and earnings quality, supporting a future earnings multiple below many large chemicals peers. However, the thesis could be challenged if prolonged global overcapacity pressures chlor alkali pricing or if Winchester margins remain constrained by weak demand and higher input costs.

UBS analyst Joshua Spector said the proposed merger of equals between Olin Corp. and Huntsman Corp. appears driven primarily by vertical integration and cost-saving opportunities rather than expansion into new end markets. The companies expect to achieve $300 million in annual cost savings by the end of the third year following the merger, with an additional $100 million opportunity available after the expiration of an Olin supply contract in 2031. UBS estimated that capitalizing the initial $300 million in annual savings at roughly six times could generate about $8 per share of value, rising to approximately $11 per share if the full $400 million of savings is realized. The projected synergies include roughly $75 million from procurement and raw-material savings, $75 million from operational efficiencies, and $150 million from reductions in selling, general and administrative expenses. Under the terms of the agreement, Huntsman shareholders would receive 0.5476 Olin shares for each Huntsman share they own, with the combined company owned approximately 54.5% by Olin shareholders and 45.5% by Huntsman shareholders.

Olin Corporation and Huntsman Corporation have signed a definitive agreement to combine in an all-stock merger of equals, creating a new company named OlinHuntsman Corporation. The combined entity will have 2025 revenues of approximately $12.5 billion and a global manufacturing footprint across North America, Europe, and Asia. Under the terms, Huntsman shareholders will receive 0.5476 shares of Olin for each HUN share they own, with existing Olin shareholders expected to own about 54.5% of the combined company and Huntsman shareholders the remaining 45.5%. The companies have identified more than $400 million in total cost synergies and integration benefits, including over $300 million in cost synergies expected to be largely realized within 24 months and an additional $100 million in raw material integration benefits beginning in 2031. The transaction, unanimously approved by both boards, is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.