Solstice Advanced Materials Inc. (Morris Plains, N.J.), a global leader in high-performance specialty materials, and Element Solutions Inc. (Fort Lauderdale, Fla.) have entered into an agreement to terminate their previously announced agreement for Solstice to acquire Element in a cash-and-stock transaction valued at approximately $14.5 billion. No fees are payable by either party as a result of the transaction termination.
“Following conversations with our shareholders and discussions between the parties, both Boards unanimously believe that it is in the best interests of our respective shareholders, employees and customers to terminate the merger agreement. We value the feedback received from shareholders in connection with the Element agreement, including their excitement about Solstice’s strategy and growth trajectory as an independent company. The Board is confident that Solstice’s strategic plan and leadership team will deliver substantial value for Solstice shareholders,” said Dr. Rajeev Gautam, Chairman of the Solstice Board of Directors.
“While we viewed the Element acquisition as an opportunity to accelerate our strategy, we have great confidence in our strategic plan and respect our shareholders’ views. As demonstrated by our reported results and recently increased guidance, which we are reaffirming today, the Solstice team is executing well and with discipline across our operations. Solstice benefits from highly differentiated technology and a business aligned with powerful secular growth trends driven by AI, data centers, nuclear energy, thermal management and semiconductor manufacturing,” said David Sewell, President and Chief Executive Officer of Solstice.
Sewell continued, “Our cash flows and balance sheet are strong, enabling both investments in our many organic growth opportunities and meaningful capital returns. We move ahead from a position of strength and with deep conviction in our team, our strategy and the significant value we can deliver for Solstice shareholders.”
Separately, Solstice’s Board of Directors has authorized a $500 million share repurchase program, and the company affirmed its third-quarter and full-year 2026 guidance.