Element deal is off

The planned $14 billion deal for Solstice Advanced Materials to acquire Element Solutions has been abandoned after what the two companies’ leaders described as “constructive feedback” from investors. Solstice shares fell by over 30% between the original announcement in early July and termination on 27 August. No termination fees will apply.

The agreement was made on the basis that Element’s speciality chemicals businesses would enable Solstice to serve demand from firms in the semiconductor, artificial intelligence and data centre spaces. They anticipated creating an entity with nearly $7 billion/year in sales and generating $180 million/year from cost cuts and synergies.