Olin/Huntsman Merger: 1+1 = 3 but No Rush to Own

Research evidence excerpt

Olin/Huntsman Merger: 1+1 = 3 but No Rush to Own

Deutsche Bank

Research

North America Industry Date

Chemicals Chemicals 22 June 2026

Olin/Huntsman Merger: 1+1 = 3 but No Rush

David Begleiter to Own

Research Analyst

+1-212-250-5473

Synergies & integration benefits substantial - 40% of combined market cap

Notwithstanding the optics of Huntsman essentially being acquired at a 13% Emily Fusco

discount to its prior day close, we view the merger of equals between Huntsman Research Associate

+1-212-250-5162 and Olin as financially attractive and strategically sound as i) the targeted cost

synergies and integration benefits are substantial with the capitalized present

value of the synergies and benefits totaling a robust 40% of the combined, pre-

merger market cap of the two companies and ii) it creates a company with

enhanced scale, scope, vertical integration, chlorine optionality and financial

strength which should improve performance and reduce volatility across cycles.

Based on Huntsman’s and Olin’s closing share prices the day prior to the merger

announcement and the exchange ratio for Huntsman shares, the value of

Huntsman shares at merger announcement were $13.85, or a 13% discount to its

prior day close of $15.89. While the optics of the discount were poor (with the

opposite being the case for Olin), it is explainable as the exchange ratios were

determined by a 30-day volume weighted average price (VWAP). Moreover, we

note Huntsman shareholders will own 45.5% of the combined company despite

contributing just 36% of the EBITDA. As such, we believe the 23% decline in

Huntsman shares in the 3 days following the merger announcement was

overdone.

The most noteworthy aspect of the merger, in our view, are the $400MM-plus of