M&Aa: Solstice terminates US$14 bn acquisition of Element Solutions; Olin/Huntsman approve US$12 bn merger deal

Speciality materials firm Solstice Advanced Materials says that it has decided to terminate the previously announced US$14.5 billion acquisition of Element Solutions Inc. No fees are payable by either party as a result of the transaction termination, it stated.

Announced in July 2026, the cash-and-stock transaction would have valued Element Solutions at roughly US$50.10 per share to target growth in AI infrastructure and semiconductor markets.

Both firms noted that investor feedback indicated both companies would create better long-term value as standalone entities.

Dr. Rajeev Gautam, Chairman of the Solstice Board of Directors said, "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."

"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," said David Sewell, President/CEO of Solstice. "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 centres, nuclear energy, thermal management and semiconductor manufacturing."

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."

Solstice also announced that its Board of Directors has approved a share repurchase program authorising the company to purchase up to US$500 million of its common stock.

Meanwhile, in a positive step, respective shareholders of Olin Corporation and Huntsman Corporation have approved the proposals necessary to complete the companies' previously announced all-stock merger of equals valued at US$12 billion.

"We greatly appreciate the strong support of Olin and Huntsman shareholders as we reach this important milestone," said Ken Lane, President/CEO of Olin. "OlinHuntsman Corporation will be a more value-focused chemicals company with a world-scale vertically integrated platform that is better positioned to serve customers across the value chain and deliver resilient financial performance. We are committed to completing the remaining steps to close the transaction, and to delivering long-term value for our shareholders, customers, employees, and communities as one company."

"OlinHuntsman will be better positioned to compete in an increasingly global industry, delivering value, adding products and greater service for customers," said Peter Huntsman, Chairman/CEO of Huntsman. "We thank our shareholders for the overwhelming support at the special meeting and look forward to completing this combination and getting to work building a global chemicals leader."

Based on preliminary voting results, at the special meeting of Olin shareholders held today, approximately 97% of the votes cast, representing 81% of all outstanding shares, were voted in favour of the consummation of the transaction through a direct merger of Olin and Huntsman.

Based on these preliminary voting results, subject to the satisfaction of other closing conditions, the transaction will proceed through a direct merger of Olin and Huntsman.

The transaction is expected to close in the first half of 2027 and remains subject to the receipt of required regulatory approvals and the satisfaction or waiver of other customary closing conditions.

The combined company, OlinHuntsman Corp., will have approximately 14,000 employees and serve customers across aerospace, automotive, construction and infrastructure, electronics, energy, industrial, water treatment and other markets. Based on 2025 results, about 56% of its revenue would come from the US and Canada, 18% from Asia-Pacific and 17% from Europe.

The merger will also connect Olin’s upstream chemical manufacturing operations more directly with Huntsman’s downstream products and customer base.

Olin manufactures and distributes chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen and hydrochloric acid. Huntsman produces polyurethane products, amines and advanced materials used across industrial and manufacturing markets.

The companies expect the combination to generate more than US$400 million in annual cost savings and other integration benefits. About US$75 million is expected to come from purchasing and raw-material integration, including procurement scale, supply-chain efficiencies and logistics changes.

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