Solstice, Element Solutions Scrap $14.5 Billion Merger as Investor Pushback Triggers $500 Million Buyback
Updated
Updated · CNBC · Aug 28
Solstice, Element Solutions Scrap $14.5 Billion Merger as Investor Pushback Triggers $500 Million Buyback
3 articles · Updated · CNBC · Aug 28
Summary
$14.5 billion is off the table after Solstice and Element Solutions abandoned the merger announced on July 6, reversing a deal that had weighed heavily on both stocks.
Investor opposition drove the retreat, with commentary in the latest report saying the market had rejected the tie-up despite Solstice's case for building a larger chemicals group with more electronics exposure.
Solstice paired the breakup with a $500 million share buyback announced Thursday night, helping lift its stock more than 14% premarket, while Element Solutions rose about 3%.
The move underscores how quickly shareholder sentiment can derail large industrial combinations when promised strategic benefits fail to offset concerns over valuation or execution.