Why does Huntsman consider chlor-alkali integration critical to the merger with Olin?

Huntsman considers chlor-alkali integration critical because it addresses a key competitive disadvantage: unlike major polyurethanes competitors such as BASF and Dow — who are all integrated into chlorine production — Huntsman has been the 'only non-integrated polyurethanes producer that doesn’t get some benefit from [integration with] chlorine.' Back-integration provides advantages across its polyurethanes business and other lines (e.g., amines, resins) that rely on chlor-alkali products like chlorine, epichlorohydrin, and caustic soda. As CEO Peter Huntsman stated, 'None of the urethane producers are benzene basic, but they are all integrated into chlorine in one way or another, at least at one facility globally,' and there is 'more differentiation on producer economics for the chlorine chain than for benzene,' making integration essential for competitiveness.

What financial impact does Huntsman expect from the merger with Olin, and how has the market reacted?

Huntsman expects the combined company to have generated about $12.5 billion in revenue and $900 million in EBITDA in 2025, rising to $1.3 billion in EBITDA with $400 million in expected cost synergies. Despite analyst support — with Jefferies noting the merger creates 'a vertically integrated company with a better balance sheet profile and [free cash flow] generation across the cycle' — market reaction has been negative: Huntsman shares fell ~25% and Olin shares ~15% between June 15 and June 22, which CEO Huntsman attributed partly to a correction after a pre-announcement rally and affirmed 'does not put the deal in jeopardy.'

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Huntsman CEO Peter Huntsman states chlor-alkali integration is vital for the Olin merger, targeting elimination of open market chlorine purchases by 2031 and realizing $400 million in synergies.

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Chlor-alkali integration critical to Olin merger – Huntsman

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