On August 29, Element Solutions fell 6.72% in regular trading, trading at $34.01/share, with turnover of $407 million. The decline was driven by the announcement that Solstice Advanced Materials and Element Solutions mutually agreed to terminate their previously announced $14.5 billion merger agreement, with neither party required to pay a termination fee.

Under the original merger terms, Element Solutions shareholders were expected to receive approximately $33 per share in a cash-and-stock combination, representing a premium of roughly 22% over the pre-announcement closing price, and would have held approximately 44% of the combined entity. The termination removes the acquisition premium embedded in the stock price, prompting a selloff as the market reprices shares back toward standalone valuation levels.

Element Solutions is a global specialty chemicals company operating in Electronics and Industrial & Specialty segments, serving industries including mobile communications, semiconductors, automotive, aerospace, and consumer electronics. In Q2, the company reported adjusted EPS of $0.47, beating the $0.43 consensus estimate, with revenue of $977.9 million versus expectations of $873.2 million.

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