Solstice and Element Solutions near $27B merger deal

• Solstice Advanced Materials and Element Solutions are in talks for a merger valued at about $27 billion, including debt.
• The deal would likely be structured mainly as stock with some cash, forming a “merger of equals.”
• Both companies are targeting growth from AI-driven demand in semiconductors and data center chemicals.

Solstice Advanced Materials (NASDAQ:SOLS), the Honeywell (NASDAQ:HON) spinoff, is in talks to merge with Element Solutions (NYSE:ESI) in a deal that could value the combined company at about $27 billion, including debt.

The discussions are centered on a merger of equals structure, with the potential deal expected to include mostly stock and some cash components.

Solstice Advanced Materials was spun off from Honeywell last year and supplies specialty chemicals used in semiconductors, refrigeration, nuclear power, and healthcare.

Element Solutions provides specialty chemicals for electronics manufacturing and reported more than 40% revenue growth in the first quarter, driven by AI-related demand.

The companies are seeking to benefit from rising demand for materials used in AI data centers and semiconductor production.

Solstice is valued at about $12.73 billion, while Element Solutions has a market value of around $10.63 billion, based on recent trading data.

Shares of both companies have risen sharply this year, reflecting investor optimism around AI-linked industrial demand.