Solstice and Element Solutions cancel merger
29th August 2026
USA: Solstice has announced that it is to terminate by mutual agreement its proposed $14.5bn acquisition of specialty chemical manufacturer and supplier Element Solutions.
Announced last month, the proposed acquisition was rejected by the shareholders of both companies, who favoured keeping the companies separate.
The acquisition would have created a company with net sales of approximately $6.8bn.
“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,” Solstice chairman Dr Rajeev Gautam explained.
Ian G H Ashken, chairman of Element Solutions, commented: “While the strategic and financial rationale of the proposed transaction was compelling, based on constructive feedback from our shareholders and discussions between the parties, both companies’ boards concluded that Element Solutions and Solstice would serve our respective shareholders better as standalone companies at this time.”
Element Solutions owns a number of subsidiaries, which go to market under different brands, including MacDermid, Compugraphics, Fernox, Electrolube and Kester.
Fernox is well known in the heating industry as a leading manufacturer of water treatment chemical products, central heating system filters, plumbing consumables and diagnostic testing services.
The group also includes EFC Gases & Advanced Materials, a supplier of a range of industrial gases including the “natural” refrigerants ammonia, CO2 and hydrocarbons propane and isobutane.
