Element Solutions shareholders will receive $10.00 in cash and 0.500 Solstice shares for each Element share, valuing Element around $50.10 per share and implying about 44% ownership of the merged company for Element holders.

The merger is framed as a merger of equals and would be largely stock-based with some cash, aiming for an early close and a post-close ownership split that gives Element shareholders roughly 44% of the combined business.

The combination strengthens Solstice’s electronics platform across semiconductor fabrication, packaging, and assembly, while expanding thermal management and data center cooling and broadening exposure to AI infrastructure and other secular growth markets.

The deal to create Solstice Advanced Materials is expected to close in the first half of 2027, subject to regulatory and shareholder approvals, with the combined company operating as Solstice and a governance team led by CEO David Sewell on an 11-member board including Element designees.

Strategic benefits include expanded capabilities in formulation, R&D, and technical services, enabling end-to-end support from early development to high-volume production across semiconductor fabrication, packaging, and assembly.

The deal aligns with Honeywell’s breakup strategy, using a spin-off approach to unlock value and test the viability of large, independent mergers.

Discussions and the reported $27 billion enterprise value figure have not been officially confirmed by the companies; the number refers to enterprise value rather than an immediate price.

The transaction will include forward-looking statements with risk factors, and requires a joint proxy statement/prospectus; results will depend on regulatory approval and integration outcomes.

Shareholders are cautioned about risks, potential synergies, timing, and integration challenges, and should review the forthcoming Joint Proxy Statement/Prospectus.

Early talks describe a merger of equals with potential to finalize shortly, though no binding agreement is in place and negotiations could still fall apart.

The deal would bolster Solstice’s position in advanced chipmaking materials by integrating its polymers and process materials with Element Solutions’ electronics, semiconductor, and automotive materials portfolio.

Antitrust and integration risks exist due to overlapping electronics chemistries and the complexity of merging two large portfolios.