Solstice (SOLS) and Element Solutions (ESI) call off their $14.5 billion combination
Executive summary: Solstice and Element Solutions announced the termination of their $14.5 billion merger agreement on September 6 2026. The cancellation ends one of the largest proposed deals in the specialty chemicals and advanced materials sector, averting a lengthy antitrust review and preserving each company’s standalone strategic options.
Who is involved: The primary parties are Solstice Advanced Materials (ticker SOLS) and Element Solutions (ticker ESI), with their boards and advisors leading the negotiations.
Likely next: Solstice is expected to proceed with its previously announced $500 million share buyback, while ESI will focus on organic growth and evaluate alternative capital‑allocation options.
The two companies announced on September 6 2026 that they have mutually agreed to abandon the planned merger, citing unsuccessful negotiations over terms and regulatory clearance. The deal, valued at approximately $14.5 billion, would have combined Solstice’s advanced materials portfolio with ESI’s specialty chemicals business to create a major player in the sector. Both firms said they will continue to pursue independent strategies, including share buybacks and organic growth initiatives. The termination removes a significant antitrust review that had been pending with U.S. and EU authorities.
Timeline
- — Solstice (SOLS) and Element Solutions (ESI) Call Off Their $14.5 Billion Combination (Yahoo Finance)
- — Solstice (SOLS) Jumps 12.8% on Merger Exit, $500M Buyback (Yahoo Finance)
- — Are ALOT, IRDM, ESI, SOLS Obtaining Fair Deals for their Shareholders? (PR Newswire)
Analysis — what this means
Likely next events
- Solstice to complete its $500 million share repurchase by Q4 2026, as disclosed in the August 29 2026 press release.
- ESI to host its Q4 2026 earnings call in mid‑October 2026, where management will outline post‑merger strategy.
Sectors affected
- Specialty chemicals
- Advanced materials
Regulatory implications
- No further Hart‑Scott‑Rodino antitrust filing required; the avoided second‑request eliminates potential delays and legal fees.
Historical parallels
- 2026‑07‑21 PR Newswire query questioning whether ALOT, IRDM, ESI and SOLS were obtaining fair deals for shareholders.
- 2022 DowDuPont merger breakup after antitrust concerns.
Key entities
Sources
Open the full interactive case file on Beyond →