Solstice, Element Solutions Terminate $14.5B Deal
Need to Know
- Solstice and Element Solutions mutually terminated their acquisition agreement Aug. 27.
- Both boards said shareholder feedback favored the companies remaining independent.
- Neither company will owe a termination fee, and Solstice approved a share-repurchase program of up to $500 million.
Solstice Advanced Materials Inc. and Element Solutions Inc. have mutually terminated their acquisition agreement, ending a cash-and-stock transaction PCI previously reported at approximately $14.5 billion, including assumed net debt.
The agreement, announced July 6, would have combined companies with approximately $6.8 billion in 2025 net sales and expanded Solstice’s position in electronics, semiconductor manufacturing, data-center cooling and industrial surface finishing.
In separate Aug. 27 statements, both companies said their boards approved the termination after conversations with shareholders. Solstice said investors expressed support for its independent strategy and growth trajectory. Element Solutions said its shareholders favored its existing management team, culture and portfolio.
Under the termination agreement, neither company will owe the other a termination fee or other payment. The companies will continue operating independently.
Solstice also authorized a share-repurchase program of up to $500 million and reaffirmed its third-quarter and full-year 2026 guidance.
The companies did not attribute the reversal to a failed regulatory review, financing problem or competing bid. The available public record supports describing the decision as a mutually agreed termination following shareholder feedback.
The cancellation preserves two independent specialty-materials platforms serving electronics, automotive and industrial surface-finishing markets and reverses one of 2026’s largest proposed materials-sector combinations. See PCI’s mergers and acquisitions coverage.
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