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June 16 (Reuters) - Olin OLN.N said on Tuesday it will acquire Huntsman HUN.N in an all-stock deal, combining two U.S. chemical producers as the industry seeks scale and cost savings amid a challenging environment.

Under the terms of the agreement, Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share they own, giving the deal a value of $2.43 billion, according to Reuters calculation.

The merger will create a chemicals company with over $12 billion in annual revenue and is expected to generate over $400 million of identified cost synergies and integration benefits, the companies said.

The implied offer price of $13.85 per share is about 12.8% below Huntsman's last closing price. Shares of Huntsman were down 8.8% in premarket trading.

The transaction is expected to close in the first half of 2027.