Solstice ends Element deal, authorizes $500 million share buyback

  • Solstice and Element Solutions mutually terminate their planned acquisition agreement.
  • Solstice shares climb more than 16% to $65.33 after a $500 million buyback.
  • Both boards scrap the deal with zero termination penalties after shareholder opposition.

Solstice Advanced Materials and Element Solutions have mutually terminated their planned combination after significant shareholder opposition, with both boards unanimously ending the July 6 agreement and neither side paying termination penalties. The cash-and-equity deal would have roughly doubled Solstice’s footprint by pairing its refrigerant and nuclear-fuel operations with Element’s semiconductor materials, targeting AI-related exposure across chips, data centers, and energy. Investors rejected the plan in the market: Solstice shares fell from above $80 to below $57 before Friday’s rebound, while Element declined from over $42 to $36.52 by Thursday’s close. Chairman Rajeev Gautam said feedback favored remaining independent, and CEO David Sewell said management respects shareholders’ views and remains confident in the standalone strategy; the walk-away also ended financing commitments with Goldman Sachs and a voting agreement with Sir Martin E. Franklin. Alongside the termination, Solstice authorized its first share repurchase program of up to $500 million, funded from cash on hand and operations, and reaffirmed 2026 projections for net sales of $4.125 billion to $4.185 billion and adjusted EPS of $2.75 to $2.95. Analysts keep a Strong Buy consensus on SOLS with an average price target of $78.17; Solstice traded near $65.33 midday Friday after peaking at $66.42, up about 16% to 17%, while Element rose 0.2% and the S&P 500 gained 0.4%.

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