Solstice Advanced Materials agreed on 6 July to acquire Element Solutions in a cash-and-stock deal valued at about $14.5bn including net debt, but the companies terminated the agreement on 27 August.
Why Solstice Advanced Materials Inc. is buying Element Solutions Inc
Solstice, the former Honeywell materials arm, said the deal would accelerate its push into electronics, AI infrastructure, thermal management and data centre cooling, combining Element's formulation and technical-service model with its own chemistry and refrigerant businesses. The combined group would have had 2025 net sales of about $6.8bn.
“Overall, we believe the combined company will be very well-positioned to benefit from generational tailwinds in high-growth end markets.”
Deal terms and financing
Element holders were to receive $10.00 in cash and 0.500 Solstice shares for each share, about $50.10 and a 15% premium to the 2 July close, and would have owned about 44% of the company. Solstice lined up a $4.7bn bridge loan from Goldman Sachs and targeted more than $180m of net synergies by year three.
Regulatory approvals and timing
The deal required antitrust clearances and votes by both sets of shareholders, with completion targeted for the first half of 2027. It was terminated by mutual agreement on 27 August 2026 before any vote, with no break fees, according to Bloomberg Government.
Market context
Element's chief executive, Ben Gliklich, said the company had heard shareholders' feedback clearly. Solstice reaffirmed its 2026 guidance and approved a share repurchase programme of up to $500m after the collapse.
