Merger Improves Cost Position, Keeps Cyclical Leverage, Creates Options

研报英文原文证据摘录

Merger Improves Cost Position, Keeps Cyclical Leverage, Creates Options

USA | Chemicals

Huntsman EquityJuneResearch16, 2026

COMPANY UPDATEMerger Improves Cost Position, Keeps Cyclical

RATING BUYLeverage, Creates Options

PRICE $15.89^

The proposed merger with Olin (OLN, NC) creates a vertically integrated

company with a better balance sheet profile and FCF generation across the PRICE TARGET | % TO PT $18.00 | +13%

cycle. It creates a company more comparable to global peers and better 52W HIGH-LOW $16.09 - $7.30

positioned to weather any potential increase in interest rates near term. We FLOAT (%) | ADV MM (USD) 95.9% | 70.93

estimate mid-cycle EBITDA at ~$2.8bn and peak at ~$4bn, though investors MARKET CAP $2.7B

may not discount a return to peak cycle frameworks until interest rates decline TICKER HUN ^Prior trading day's closing price unless otherwise

100-150bps. noted. Price: Intraday price

The Merger: Huntsman has announced an all-stock merger with Olin (54.5% Olin, 45.5% Huntsman)

to create OlinHuntsman. The merger is expected to close in 1H27 and to lead to >$300m in synergy FY (Dec) CHANGE TO JEFe JEF vs CONS

and integration benefits by 2H30 (half from SG&A, the balance split between purchasing savings 2026 2027 2026 2027

and asset optimization). Another >$100m in raw material cost synergies appear likely by 2031 once REV NA NA -3% +2%

current contracts end, along with ~$125m in cash tax benefits from accelerated NOLs. Synergies EPS NA NA -150% -70%

will require $100-$150m in cash costs.

2026 ($) Q1A Q2 Q3 Q4 FY

The New Portfolio: The new company will generate 56% of sales in North America, 18% in APAC,

EPS (0.05) 0.04 0.02 (0.21) (0.20)

and 17% in Europe. We estimate chlor-alkali products would be ~51% of pro forma 2025E EBITDA,

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