Solstice Advanced Materials and Element Solutions canceled their proposed merger after shareholder feedback indicated preference for remaining independent. The deal, announced last month, would have seen Solstice acquire Element for over $12 billion in cash and stock, valued at about $14.5 billion including debt. The acquisition aimed to expand Solstice’s presence in high-growth electronics and AI infrastructure markets.

Both companies stated their boards terminated the agreement following shareholder conversations, with no termination fees incurred. Solstice CEO David Sewell affirmed confidence in their strategic plan and respect for shareholder views. Element CEO Benjamin Gliklich noted the strategic rationale was compelling but emphasized listening to shareholders who favored the current management and portfolio structure.

Solstice reaffirmed its Q3 and full-year guidance and approved a new $500 million share repurchase program. The deal had been slated to close in the first half of 2027.