Huntsman Shares Drop 18% After Merger Deal Valued at 13% Discount
HUN sits 82% above its 52-week low of $7.295 on elevated volume (3.6× avg).
Summary
Huntsman and Olin announced an all-stock merger of equals to create OlinHuntsman Corporation, a $12.5 billion chemicals leader. This news, following earlier SEC filings today, caused Huntsman stock to sink 18% and Olin shares to decline 7.6%. The market reacted negatively because the deal, which gives Huntsman shareholders 0.5476 shares of Olin for each Huntsman share, appeared to value Huntsman at a 13% discount to its prior closing price. This discount stemmed from the exchange ratio being based on a 30-day volume-weighted average price (VWAP) as of June 12, 2026, which was below recent spot prices. While analysts point to potential synergies and scale benefits for the combined entity, the immediate focus is on the perceived valuation for Huntsman. The combination is expected to close in the first half of 2027.
At the time of this announcement, HUN was trading at $13.27 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.3B. The 52-week trading range was $7.30 to $16.09. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.